China Halts Building of 6.19 Million Mt/Year New Aluminum Capacity

China has this year halted the building of 6.19 million mt/year new aluminum smelting capacity which breached state rules and regulations, the Department of Commerce of Shandong Province said Friday.

The department, quoting data from China Nonferrous Metals Industry Association, said China shut a total of 11 million mt/year domestic aluminum capacity this year, including 6.19 million mt/year new aluminum smelting capacity under construction plus 5.37 million mt/year of built aluminum smelting capacity, all of which violated rules.

China has required new aluminum smelting projects to use electrolytic cells with above 400kA, with existing aluminum plants to use at least 160kA cells.

On April 12, a circular was issued requiring regional rectification to be done in six months. According to the circular, aluminum smelting projects built after May, 2013 that have violated rules and regulations must halt operations, while the ones under construction which breached laws must be stopped at once.

China has required new alumina projects to have a capacity of at least 800,000 mt/year. Those using domestic bauxite must have auxiliary bauxite mines with a mining life of over 30 years, meeting 85% of its alumina output need, while alumina projects that use imported bauxite must have term bauxite supply contracts for five years, meeting over 60% of alumina output need.

In November, state-run metals consultancy Antaike revised its forecast of China's national aluminum market balance for next year, predicting a deficit of 100,000 mt as against previous forecast of a surplus of 1.13 million mt next year.