Commodities
China’s Cap on Aluminum Capacity to Slow Output and Cut Exports
- Prices of the lightweight metal could be poised to rebound
- SMM says overseas sales could drop as much as 9% in 2025
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China’s aluminum industry, the world’s largest, is nearing an inflection point this year, as limits on capacity begin to curb production and entice firms to expand overseas.
The government capped annual capacity at 45 million tons in 2017 to tackle excess supply and emissions. That ceiling’s already been reached, and annual figures on Friday are expected to show output in 2024 hitting a record of more than 43 million tons.