Shandong province to limit its new aluminium capacity while boosting aluminium processing

According to an SMM report, Shandong province, one of the major aluminium producing region in China, is going to restrict its new alumina and aluminium capacity. The province will encourage the development of aluminium processing industry instead.

The province has an intention to keep capacity utilization rate in alumina and aluminium industries at above 80% before the end of 2020. Also, it aims to raise aluminium output/aluminium semis output ratio to 1:1.4.  

The new aluminium projects (including renovation projects and expansion projects) must come under capacity swap program. If a new project comes up, it has to be “swapped” with the removed project of the same capacity or of higher capacity in order to get approved.

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China is currently producing about 53 per cent of the total aluminium production. The country has 79.25 million tonnes of annual alumina capacity as reported in the end of 2016.

According to the aluminium sector report from Antaike, state-run metals consultancy firm in Beijing, published in May, China is expected to add 6.65 million tonnes per year of new alumina capacity in 2017, mostly in North China, Central China and Northwest China.