Chinese aluminium producers approach state to buy surplus supply

China's aluminium producers have asked Beijing to buy up surplus metal, sources said, the first coordinated effort since 2009 to revive prices suffering their worst rout since the global financial crisis.

The state-controlled metals industry body, China Nonferrous Metals Industry Association, proposed on Monday, November 23, that the government scoop up aluminium, an official at the association and two industry sources with direct knowledge of the matter said.

The request was made to the state planner, the National Development and Reform Commission (NDRC).

While it is not clear if the authorities will agree to the proposal, the approach underlines the extent to which loss-making smelters in the world's top producer and consumer are suffering from prices hovering at or near multi-year lows.

One source familiar with the producers' request said the China Nonferrous Metals Industry Association had suggested that the state buys 900,000 tonnes of aluminium.

The push to get the government to bail out the industry is likely to stir debate over whether Chinese producers in particular are doing enough to limit oversupply that is overwhelming global demand.

In the United States, aluminium smelters have blamed ballooning exports from China for hurting international prices. Aluminium prices have fallen nearly 30 per cent over the past year.