China primary aluminium capacity capped at 45 million tonnes
The strict policy to cap primary aluminium production in China at 45 million tonnes per year, has been telegraphed for many years. As such, capacity ex-China is set to expand rapidly over the next decade.
Foreign investments outside China can futureproof its growing aluminium needs and this template has been replicated in many other resource rich countries.
This has of course made China even more powerful, allowing it to retrain control over key critical minerals, which has unsurprisingly invited trade sanctions and forced its western counterparts to reduce reliance by re-establishing alternative sources of supply.
China alumina production growing strongly amid strong profit margins
China’s alumina and aluminium output continued to rise in August, according to the latest data from the country’s National Bureau of Statistics (NBS).
Chinese domestic alumina prices kept moving higher, leading to refineries trying to produce more to benefit from the improved margins, sources said.
China transforming the Indonesian landscape
China’s success in transforming Indonesia’s fortunes and landscape should bring prosperity to that region too. Future investments and other collaborative projects should yield higher alumina output, and it could potentially boost primary aluminium output too.
Analysts remain optimistic about Indonesia’s key role in supplying the world with the much-needed minerals to achieve a greener future. With the right attitude and ambitious mindset, Indonesia looks set to be the next powerhouse in the aluminium space.
