Aluminum production in China, the world's largest maker of the metal, may rise 16 percent to 14.6 million metric tons this year, Macquarie Group Ltd told Bloomberg News yesterday.
China's aluminum production capacity is expected to reach 18.6 million tons a year at the end of 2008, analysts led by Bonnie Liu, wrote in an e-mailed report. China is also the world's largest consumer of the metal used in airplanes, cars and many other products.
"China's aluminum industry is extremely competitive in terms of its low (capacity expenditure) costs and resulting very quick payback period compared with aluminum smelters elsewhere in the world," the analysts said.
There are about 5.8 million tons of aluminum smelting projects under construction, which are set to be finished by the end of 2009, the report said. In addition, there are 2.4 million tons planned or proposed projects to be developed by domestic smelters before the end of the decade, the report said.
"We believe that China will remain a major supplier of aluminum units to the rest of the world, but different tax treatments mean that it will be much more attractive to export products than metal or alloys," the report said.
(Shanghai Daily August 5, 2008)
