China’s aluminum output is expected to grow 30 per cent to 17 million tonnes this year, while consumption will grow 20 per cent to 16.5 million tonnes, Aluminium Corporation of China (Chinalco) president Xiong Weiping has said.

Alumina production will grow 30 per cent to 31 million tonnes, while demand will rise 33 per cent to 35 million tonnes, he added.

Weiping was not worried about oversupply in China or globally, or the 580,000 tonnes of aluminum stockpiled by China’s State Reserves Bureau (SRB) and a further 500,000 tonnes stockpiled by local governments in China last year.

“I think the SRB’s stock is strategic and for the longer term, so it won’t go into the market in a short time period, and the total 1.08 million tonnes of stockpile is small compared to the current national aluminum production and consumption. Even if it was all released, it would not have a great influence on the market.”

But he was worried about stockpiles of more than 4 million tonnes of aluminum held in London Metal Exchange stocks, although about 3 million tonnes were locked into financial transactions, he said.