China Tianyuan to double secondary aluminium capacity
China's Sanmenxia Tianyuan Aluminium Co plans to double its production capacity of secondary aluminium next year to 100,000 tons, as the aluminium market recovers, a senior executive of the company said on Tuesday.
"Although there is overcapacity for now, aluminium consumption will definitely increase every year," said Xiao Chongxin, deputy general manager of the company.
"We are optimistic about the primary aluminium market next year, but cautious on price outlook."
Xiao expected aluminium prices to hover around 16,500 yuan ($2,417) a ton next year.
Sanmenxia Tianyuan currently has production capacity of 50,000 tons. Part of the secondary aluminium is used as feedstock for its aluminium products.
The benchmark third-month aluminium futures contract on the Shanghai Futures Exchange MAL3 rose 32 percent so far this year, but lagged behind a strong rally in copper that more than doubled prices.
