It is said from Xiong Weiping (chairman of Chinalco, parent of Chalco) at the World Economic Forum concluded in the last weekend that About 20-30 percent of China’s aluminum production capacity is periodically in excess.

Production capacity of both alumina and electrolytic aluminum is surplus by between 20 to 30 percent in China, but the surplus is not caused by last year’s economic slowdown and decreased demand, Xiong noted.”It is periodical,” Xiong said, “As Chinese economy recovers, and its urbanization and industrialization speed up, the country will definitely demand more base metals.”

Xiong is optimistic about the aluminum prices in the long run. “The aluminum industry is a sunrise industry. Aluminum will be widely used in energy saving, clean production, environmental protection and circular economy.”

But the short-term price trend still depends on whether China’s economy will come to real stabilization soon, according to Xiong.

Xiong negotiations with power generators for direct power supply will continue and there is still no exact timetable.

Although Chinalco’s investment in Rio Tinto fell halfway, Xiong Weiping states that the company will stick to its policy of investing in rich resources and following the market closely.

It is said from Xiong Weiping, chairman of Chinalco, parent of Chalco, at the World Economic Forum concluded in the last weekend that about 20-30 percent of China’s aluminum production capacity is periodically in excess.

Production capacity of both alumina and electrolytic aluminum is surplus by between 20 to 30 percent in China, but the surplus is not caused by last year’s economic slowdown and decreased demand, Xiong noted.”It is periodical,” Xiong said, “As Chinese economy recovers, and its urbanization and industrialization speed up, the country will definitely demand more base metals.”

Xiong is optimistic about the aluminum prices in the long run. “The aluminum industry is a sunrise industry. Aluminum will be widely used in energy saving, clean production, environmental protection and circular economy.”

But the short-term price trend still depends on whether China’s economy will come to real stabilization soon, according to Xiong.

Xiong negotiations with power generators for direct power supply will continue and there is still no exact timetable.

It is also said that the companies will stick to its policy of investing in rich resources and following the market closely, though Chinalco’s investment in Rio Tinto fell halfway.