Capped at home, China extends its aluminum dominance abroad
China's aluminum producers are increasingly turning to developing smelters abroad against a capacity cap of 45 million tonnes at home, extending the country's industry dominance further afield.
China's aluminum industry is extending its dominance globally by investing in smelter projects outside the country, despite a 45-million-tonne capacity cap at home. This comes as domestic smelters operate near full capacity, driven by favorable market conditions, low raw material costs, and high margins. The mandated capacity cap, in place since 2017, aims to address power system stress and prevent an oversupply of aluminum.
National output has exceeded the cap for several months, prompting Chinese producers to seek opportunities abroad. Indonesia has become a primary destination for new smelters, with Chinese-backed companies developing projects in collaboration with local partners. Other potential markets include Kazakhstan and Angola, where Chinese companies are planning integrated production facilities.
China currently controls around 60-63% of global aluminum production, a lead that is expected to solidify as Western nations struggle to match the scale of Chinese-backed smelters.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
