BEIJING, Mar 08, 2012 (Dow Jones) -- China's aluminum industry is likely to grow in 2012 at its slowest rate in more than three years, with consumption likely to rise 5%-10% year-on-year, the chairman of major aluminum producer Henan Shenhuo Group said Thursday.
Speaking to Dow Jones Newswires on the sidelines of China's annual legislative session, Li Chong said the slow growth compares with rates of more than 20% in pre-crisis years.
The domestic aluminum industry is beset by severe oversupply pressures and warehouse inventories are at record levels, he said.
Shenhuo is planning to cut its galvanized-aluminum output this year to 600,000 metric tons from 700,000 tons last year as a result of the softer growth conditions, Li said.
"The theme for the industry in the next three to five years will be consolidation and elimination of outdated capacity," he said.