China’s Aluminum Overcapacity Seen by Fitch Holding Down Prices

Rising capacity at aluminum plants in China, which account for almost half of world output, will weigh down prices this year in a market that’s already over-supplied, according to Fitch Ratings Ltd.

Capacity may increase to 34.2 million metric tons from 30.3 million tons in 2013 and 26 million tons in 2012, Fitch analysts Laura Zhai in Hong Kong and Su Aik Lim in Singapore, wrote in a report today. Most of the additions will be in the western part of the country, according to the report.