China tightens regulations on new alumina plant construction to address overcapacity

Published: Apr 3, 2025 09:44

Save

With an agenda of counteracting persistent overcapacity and subsequently stabilising global alumina prices, China has come up with a bunch of measures (of course, in a series) aimed at curtailing the rapid expansion of alumina production. The new directives, outlined in the Ministry of Industry and Information Technology’s (MIIT) Action Plan for the High-Quality Development of the Aluminium Industry (2025–2027), extensively highlight the need to shift the country’s approach to managing its aluminium supply chain.

Policy overview and strategic objectives

The latest policy mandates that firms who are planning to establish new alumina projects must secure adequate bauxite supply to ensure a balanced and sustainable growth model. This requirement is a successor to the earlier guidance provided to China’s copper smelting industry and ensures a path towards a broader commitment to resource security. Furthermore, bringing environmental stewardship with industrial development to the centre stage, the new rules also stipulate that projects in heavily polluted areas will not receive further approval.

According to SMM, key targets of the action plan include:

Log in alcircle to Read the full story for FREE

Source: https://www.alcircle.com/news/china-tightens-regulations-on-new-alumina-plant-construction-to-address-overcapacity-113716

Market review

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

4 hours ago

Vietnam Seeks Fuel Support as Diesel, Petrol Prices Surge Amid Global Oil Crisis

[SMM Aluminum Express News] Diesel prices in Vietnam have surged over 105% since late February, rising from 19,270 dong to 39,660 dong (US$1.50) per litre, while 95-octane petrol climbed nearly 68% to 33,840 dong following the outbreak of conflict involving the United States, Israel, and Iran. Soaring global oil prices have triggered supply concerns, prompting Vietnam to seek fuel support from Qatar, Kuwait, Algeria, and Japan, while also signing a new oil and gas cooperation deal with Russia.

4 hours ago

5 hours ago

Geopolitical Disruptions and a Stronger Dollar Combined to Keep Aluminum Prices Volatile Under Pressure [SMM Aluminum Morning Meeting Summary]

[Geopolitical Disruptions Coupled With a Stronger US Dollar Put Aluminum Prices Under Pressure and Cause Volatility] Continued destocking in LME inventory provided bottom support for LME aluminum, but amid tightening capital liquidity and profit-taking by bulls, upward momentum was insufficient, and the backwardation structure weakened somewhat. China’s social inventory rose to a high for the same period in nearly five years, and the inventory buildup cycle has yet to end, with high inventory and weak spot fundamentals jointly suppressing upward momentum. The divergence between domestic and overseas drivers continued, the SHFE/LME price ratio kept weakening, and prices were mainly under pressure in the short term.

5 hours ago

Futures Rebound Drove Quote Increases, While Weak Transactions Capped Gains [SMM Cast Aluminum Alloy Morning Comment]

[SMM Cast Aluminum Alloy Morning Comment: Futures Rebound Drove Quotation Increases, While Weak Transactions Capped Gains] Spot side, yesterday the secondary aluminum alloy market was lifted by the futures rebound, with quotations edging up and mainstream gains at 100 yuan/mt. Some enterprises raised prices in line with the trend to recover earlier losses, and market sentiment improved slightly from the previous period. However, transactions remained weak, with downstream buyers mainly purchasing as needed and showing limited acceptance of high prices, constraining upside room for prices. In the short term, ADC12 prices are expected to fluctuate rangebound, and further gains will still require substantive improvement on the demand side.

5 hours ago