China scales back metals expansion to curb overcapacity
China has lowered its annual output growth target for key non-ferrous metals in 2025–26, signaling a policy pivot from rapid expansion to efficiency and sustainability.
Production of the 10 main non-ferrous metals, including copper and aluminum, is now set to grow an average of 1.5% a year, the Ministry of Industry and Information Technology said Sunday, down from the 5% pace in the prior plan.
The ministry said the shift reflects a drive for “high-quality development,” with greater emphasis on energy efficiency, recycling, and emissions cuts. China faces mounting pressure to rein in overcapacity, curb carbon output, and steady global commodity markets.
The softer growth outlook also aligns with Beijing’s broader economic rebalancing toward advanced manufacturing and clean energy.
Authorities pledged to push technological upgrades, expand secondary metal use, and improve supply chain security, moves analysts say could ease oversupply risks in markets like aluminum.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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