China promises to cut aluminum production

China's leaders have pledged to curb aluminum production that is flooding global markets and threatening jobs in the EU and the US, but Chinese producers have ambitious expansion plans.

Market glut has reduced Western buyers' spending on aluminum used in lightweight cars and aircraft. Prices have dropped so low that American and European factories are being closed, and trade penalties are being imposed on Chinese manufacturers.

Despite this, Chinese factories that produce more than half of the world's aluminum add millions of tons of capacity, with government support. Inappropriate subsidies include cheaper energy. The June output hit a monthly record of 2.7 million tonnes, according to the Aluminum Institute in London.

Chinese manufacturers dispute that overcapacity in industry is getting worse. "We believe that if the excess capacity in the aluminum industry is temporary," the China Non-ferrous Metals Industry Association said in a statement.

Aluminum is receiving less public attention than China's carbon steel exports, which Washington imposed anti-dumping tariffs on in July. But pressure is growing in the aluminum industry as well, as a US industry group approached regulators in April to investigate shipments from Chinese manufacturers.