China’s push for a greener aluminium industry, which accounts for nearly 60% of global output, is being hindered by erratic rainfall in the country’s southwest. The industry, which some estimate emits more CO2 than Australia, had been moving capacity to Yunnan province, attracted by promises of cheap hydropower. However, poor rainfall has led to unreliable electricity supplies, and only just over half of the planned capacity shift has occurred. Some smelters are slowing or scaling back their plans, and others are seeking alternative locations. The power cuts have also caused volatility in global aluminium prices and threatened the potential for producers to benefit from demand for “green” metal.

Source: Reuters