Analysts said at the China Aluminum Industry Exhibition that in 2006 China is expected to surpass Australia to become the world’s largest alumina producer.
Wang An, chief analyst at Beijing Antec Information Development Co., Ltd., said that alumina production will reach 20 million tons in 2007, an increase of 45%, but the average price may remain above the level of 255 US dollars / ton - not even this year's price half.
Mr. Wang said, “China and other countries in the world will increase their respective alumina production.” He added that the global supply of aluminum will reach 300,000 tons next year, exceeding the demand of 250,000 tons.
At the show, Wen Xianjun, head of the China Nonferrous Metals Industry Association, said that he expects China's primary aluminum consumption this year will reach 8.38 million tons, which is 18% higher than last year's consumption of 7.1 million tons.
The growth rate of China's aluminum production this year is expected to be lower than 11.1%, and the growth rate of last year was 14.4%. This is mainly due to Beijing's efforts to curb investment in the energy-intensive industry, the aluminum industry.
The meeting brings together government, analysts and companies, including China Aluminum Corporation, China's alumina producer, and China's larger primary aluminum producer.
Vice President Yu Hong said that the company plans to acquire copper smelters in China and plans to invest in overseas mines to achieve diversified production and increase sales. He also added that before the year 2010, China Aluminium's cathode copper production will reach 900,000 tons/year.
Mr. Wang added that China is a larger aluminum producer and user, and if the government maintains the export tax rebate for export of aluminum products unchanged, aluminum demand will reach 10.7 million tons next year, an increase of 25%.

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