Industry sources say that the city produces 5.6 percent of China's total electrolytic aluminium, and that any disruptions will drive up prices for raw materials upstream, among other things.

According to industry sources, production in Baise has been halted due to a citywide lockdown for disease protection. Another source from a local aluminium firm claimed that the production halt drove up prices by "hundreds of yuan per tonne" in a single day on Monday and Tuesday. Baise has alumina production capability of up to 10 million tonnes per year, accounting for 13.8% of total domestic capacity. The city's electrolytic aluminium manufacturing capacity accounts for up to 80% of Guangxi's total and 4% of China's total.

The combination of increasing demand and traffic restrictions in Baise is expected to result in smaller inventory and higher pricing. China is the world's largest producer of electrolytic aluminium, accounting for more than half of worldwide output, according to industry figures, and it has experienced tremendous expansion in recent years.

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