Mr. Yao Xizhi, the chief analyst of Chalco International, said that alumina demand in China obviously decreased in recent years due to effect by domestic structure reforms in the supply side, and it was expected that the future scale of alumina production capacity to be narrowed due to the restriction by the fixed amount of primary aluminum production capacity.
Besides, the utilization rate of alumina production capacity in domestic and foreign market has kept at a low level, coupled with the relatively high costs in some areas of China compared to other countries, such as Australia, Brazil and India, so it was expected that the global increase in alumina production capacity will be mainly in other countries outside China.