China slashes key metals growth target amid overcapacity curbs
Years of rapid capacity additions in aluminium, copper and battery materials have led to periodic gluts and profit squeezes
[SINGAPORE] China has slashed its annual output growth target for key non-ferrous metals over 2025 and 2026, underscoring a policy shift from volume expansion to efficiency and sustainability.
Production of the 10 main non-ferrous metals, including copper and aluminium, is now expected to rise by an average of 1.5 per cent a year in the period, according to a Ministry of Industry and Information Technology statement on Sunday (Sep 28). That compares with the 5 per cent pace set in the previous two-year blueprint.
The scaled-back ambitions reflect Beijing’s effort to pursue industry upgrades and decarbonisation efforts, as it also seeks to rein in oversupply. Years of rapid capacity additions in aluminium, copper and battery materials have led to periodic gluts and profit squeezes.
At the same time, Beijing is putting more weight on recycling, aiming for annual secondary metal output to exceed 20 million tons by 2026, and broadening support for reuse of waste batteries, solar panels and other scrap materials.
The roadmap also seeks to achieve breakthroughs in high-end products such as ultra-high purity metals and advanced rare earth materials, while helping companies cope with trade measures by foreign countries and enhance global competitiveness.
Copper rose 2.3 per cent to settle at US$10,414 a tonne on the London Metal Exchange (LME) at 5.50 pm London time. Other LME metals, including aluminium and zinc, also rose.
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Share prices of Chinese metals producers rose on Monday in Hong Kong, with Jiangxi Copper gaining as much as 5 per cent, and Aluminum Corporation of China also climbed more than 5 per cent. BLOOMBERG
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