State Council: China to Accelerate Capacity Cuts in Aluminum and Other Sectors and Strictly Control New Ones

Published: Aug 24, 2017 17:09

Save

Efforts have been required to promote industry transformation and upgrading and de-leveraging at one State Council’s executive meeting on Aug. 23, chaired by Premier Li Keqiang.

SHANGHAI, Aug. 24 (SMM) – Efforts have been required to promote industry transformation and upgrading and de-leveraging at one State Council’s executive meeting on Aug. 23, chaired by Premier Li Keqiang.

The meeting called for taking effective measures to complete overcapacity elimination targets in steel and coal sectors, and deal with issues, including “Zombie enterprises” and impoverished enterprises. Meanwhile, work on capacity cuts in thermal power, aluminum and other sectors should be also enhanced, and newly-added capacities should be strictly monitored.

SHFE Takes Restriction Measures on HC1710 and HC1801 Contracts

Following the news, SHFE aluminum surged by over 2 per cent on Wednesday’s night trading.

The article is edited by SMM and is provided for information purpose only. SMM assumes no liability and does not warrant the accuracy, reliability or completeness of information contained or quoted in the article, either express or implied. SMM further disclaims any liability for losses in connection with the information contained or quoted in the article.

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

capacity cuts aluminum capacity cuts

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 to learn 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

Apr 30, 2026 22:09

Cautious Stockpiling Amid High Copper Prices, Finished Product Inventories Down Slightly Before Labour Day

[SMM Copper Wire and Cable Weekly Inventory] Despite the approaching Labour Day holiday, overall enterprise stockpiling sentiment remained cautious due to high copper prices. As a result, raw material inventories of mainstream copper wire and cable enterprises in China edged up 2.58% WoW. Finished product inventories side, some wire and cable enterprises suspended quotations during the Labour Day holiday, and some end-users cautiously picked up goods in advance, driving finished product inventories down slightly by 2.42% WoW.

Apr 30, 2026 22:09

Apr 30, 2026 22:08

Copper Wire and Cable Industry Sees Decline in Operating Rates Amid High Copper Prices

This week (April 24–April 30), the SMM operating rate of copper wire and cable enterprises was 65.9%, down 1.09 percentage points WoW. Copper prices hovered at highs this week, and earlier concentrated procurement had front-loaded some subsequent demand. Industry orders in the wire and cable industry remained weak, with operating rates continuing to decline. Next week, wire and cable industry operations will continue to pull back. Most enterprises will have a short Labour Day holiday break, with some choosing to cut production or maintain operations without shutting down. The operating rate is expected to continue falling by 3.12 percentage points WoW to 62.78%.

Apr 30, 2026 22:08

Apr 30, 2026 22:03

Diverse Holiday Production Plans Among Chinese Wire and Cable Enterprises as Labour Day Nears

[SMM Wire and Cable Holiday Survey] As the Labour Day holiday approaches, SMM conducted an in-depth survey on holiday production arrangements among 13 mainstream wire and cable enterprises in China, with a combined sample capacity of 1.67 million mt. The survey showed that enterprises' holiday production plans were divergent. Most enterprises followed their usual practice of maintaining production during the holiday; some enterprises, however, chose to halt production during the holiday due to weakening orders, adjusting their production pace to ease finished product inventory pressure.

Apr 30, 2026 22:03