Feb. 25 (Bloomberg) -- China, the world’s third-biggest economy, will take steps to boost domestic demand for nonferrous metals and “strictly control” capacity expansion under an industry stimulus plan, the government said.

The consumer of more than a third of the world’s aluminum output and a quarter of its copper will also expedite mergers in the industry, boost metal recycling and guarantee supply of the raw material, the State Council, or Cabinet, said in a statement on the Web site today. The Cabinet passed stimulus plans for the nonferrous-metals and logistics industries in a meeting today chaired by Premier Wen Jiabao.

The country has passed stimulus packages for oil, steel and automobile industries this year that will add to the 4 trillion yuan ($585 billion) of spending announced in November to spur economic growth. Emerging markets including China may be the first to recover from the global recession, JPMorgan Chase & Co. said this month.

Subsidies will be given to metal producers to help with loan repayments, according to the statement. Reserves of the metal will also be set up, the Cabinet said.

To contact the reporter for this story: Helen Yuan in Shanghai at hyuan@bloomberg.net

Last Updated: February 25, 2009 06:43 EST