Aluminum Overcapacity Too?

SCMP: China Hongqiao chief dismisses aluminium overcapacity concerns
Chief executive Zhang Bo said China’s high demand for the lightweight industrial metal and improving “self-discipline” in production and capacity expansion has already resulted in a much healthier state than some analysts’ believe.

The nation accounted for 53 per cent of the global demand of 30 million tonnes in the first half of the year.

Asked if he agrees with an analyst’s view that aluminium prices may fall 11 per cent in the next four years amid oversupply, Zhang said on Monday: “Our view, and also the view of our industry’s association is that, given the industry’s overall plant utilisation exceeds 80 per cent, and over 80 per cent of the smelters are profitable, nobody [should] have the idea that the industry is in major overcapacity.”

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