How Much Output will China Restarted and New Aluminum Capacity Contribute in H1?

Published: Apr 12, 2016 09:28
Continuous price recovery has triggered restart of idled capacity and commissioning of new capacity in Chinese aluminum market.

SHANGHAI, Apr. 12 (SMM) – Continuous price recovery has triggered restart of idled capacity and commissioning of new capacity in Chinese aluminum market. How much output will those capacities contribute in the first half of this year?

SMM expects restarted capacity unlikely to exceed 300,000-tpy in the first half of this year, contributed mainly by smelters with power tariff subsidies and scale effect. These restarted capacities will contribute less than 50,000 tonnes to output in H1, though. 

High restart cost and tight bank lending will deter many smelters from following suit. Besides, rising coal and alumina prices will also act as constraints, SMM aluminum analyst Liu Xiaolei explained.  

As for new capacity, the figure is unlikely to surpass 500,000-tpy in Q2, with output contribution estimated at just around 70,000 tonnes, According to SMM survey. 

About 20% of operational aluminum capacity in the country is still suffering losses in terms of full costs even after aluminum prices rebounded to around 11,600 yuan per tonne. 

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.


Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Yingkou Jianfa Shenghai Phase I 300,000 mt Copper Cathode Project Smelting Furnace Starts Production, Pyrometallurgy System Enters Furnace Drying Stage
Sep 12, 2026 16:51
Yingkou Jianfa Shenghai Phase I 300,000 mt Copper Cathode Project Smelting Furnace Starts Production, Pyrometallurgy System Enters Furnace Drying Stage
Read More
Yingkou Jianfa Shenghai Phase I 300,000 mt Copper Cathode Project Smelting Furnace Starts Production, Pyrometallurgy System Enters Furnace Drying Stage
Yingkou Jianfa Shenghai Phase I 300,000 mt Copper Cathode Project Smelting Furnace Starts Production, Pyrometallurgy System Enters Furnace Drying Stage
At 9:58 on September 12, the core smelting furnace of the pyrometallurgy system at Yingkou Jianfa Shenghai Nonferrous Metals & Chemicals Co., Ltd.'s multi-metal recovery project was successfully ignited, officially entering the furnace drying stage and marking a key step toward full-line commissioning and production. Public information shows that the Yingkou Jianfa Shenghai polymetallic complex gold-silver ore comprehensive recovery technology upgrade, relocation, and expansion project uses copper concentrates as its main raw material, with an overall planned capacity of 600,000 mt/year of copper cathode to be built in two phases, with capacity of 300,000 mt/year in each phase. Phase I is designed to produce 300,000 mt/year of copper cathode and 1.18 million mt/year of sulphuric acid, along with supporting systems for smelting, converting, anode refining, electrolysis, slag beneficiation, and precious metal recovery. After this ignition, the project will carry out standardized furnace drying and hot-state integrated trial runs across the entire system to verify equipment, instruments, interlocks, and automatic control systems. The project has not yet formally started raw material feeding and production; after furnace drying and system commissioning are completed, it will further advance the commissioning of Phase I's 300,000 mt/year copper cathode capacity. If the project is successfully brought into production, it is expected to increase copper smelting capacity in North China and further boost domestic demand for copper concentrate raw materials.
Sep 12, 2026 16:51
Precious Metals Remain Range-Bound as Macro Enters Key Validation Window [SMM Precious Metals Macro Analysis]
Sep 11, 2026 17:43
Precious Metals Remain Range-Bound as Macro Enters Key Validation Window [SMM Precious Metals Macro Analysis]
Read More
Precious Metals Remain Range-Bound as Macro Enters Key Validation Window [SMM Precious Metals Macro Analysis]
Precious Metals Remain Range-Bound as Macro Enters Key Validation Window [SMM Precious Metals Macro Analysis]
Sep 11, 2026 17:43
Amigo Resources Reports PGM Values of Up to 7.07 ppm in Tanzania Processing Testwork​
Sep 11, 2026 16:30
Amigo Resources Reports PGM Values of Up to 7.07 ppm in Tanzania Processing Testwork​
Read More
Amigo Resources Reports PGM Values of Up to 7.07 ppm in Tanzania Processing Testwork​
Amigo Resources Reports PGM Values of Up to 7.07 ppm in Tanzania Processing Testwork​
[SMM Flash] Amigo Resources reported independent laboratory results from selected Tanzanian material showing combined PGM values of 6.94–7.07 ppm, alongside residual gold values of 3.27–3.47 ppm. The company said it is assessing the integration of proprietary PGM concentration technology into its processing flowsheets to target recovery from gravity tailings and other residual material. Amigo is also evaluating a pyrometallurgical copper-matte treatment route and has mobilised a small-scale furnace for further testwork.​ The programme could potentially establish PGMs as a recoverable by-product from Amigo's Tanzanian polymetallic material if subsequent metallurgical work demonstrates viable recoveries. However, the reported grades relate to selected test material and processing studies and do not constitute a compliant Mineral Resource, reserve or evidence of commercial-scale PGM production. Further metallurgical testing will therefore be important in determining whether the reported PGM content can translate into an economically recoverable product stream.
Sep 11, 2026 16:30