Oversupply in China may threat aluminum

Reportedly, aluminum prices have kept gone upward recently.

It’s analyzed a combination of improvements in the industrial, housing sectors and the investment interests in commodities market sustained the strength of aluminum prices.

According to data, China’s aluminum production was at 5.6 million tonnes in 2010 and it was expected to rise 14% to 25 million tonnes this year which means aluminum market is facing oversupply. Meanwhile, the primary aluminum output hit a record of 1.459 million tonnes during the month of April.

China Ministry of Industry and Information Technology have planned to regulate to curb usage by shutting down inefficient production units and take away 700 tonnes under the regulations.