Aluminum production capacity in China to increase by 7 percent in 2015

China will increase the operability of its aluminum smelting capacity by 7 percent and reach production of 31 million tonnes in 2015, up from 29 million tonnes in 2014, according to the Henan Non-Ferrous Metals Industry Association. The report says that in 2015, the working capacity of aluminum will be 58 million tons. It is also specified that next year supplies and demand for alumina will be balanced if imports reach 5 million tons.

The National Bureau of Statistics estimates China's 2014 refined aluminum production at 24.5 million tonnes and expects it to rise 6-7 percent in 2015. Further weakness in China's economy could reduce domestic demand for aluminum in the new year, the report says.

However, favorable monetary policy and an increase in the construction of affordable housing will help stabilize the demand for aluminum products from the construction sector in 2015, which will lead to an increase in sales in the country. It is also expected that demand for aluminum from the energy and automotive sectors will be stronger than last year.

The report says that China plans to add 3.8 million tons per year of new aluminum smelting capacity in 2015, about 1.5 - 2.0 million tons of capacity is planned to gradually begin to be commissioned from the end of the 1st quarter to the beginning of the second half of the year.