Is There Overcapacity in Primary Aluminium Industry?
Overcapacity of primary aluminium is local surplus. In traditional aluminium producing provinces such as Henan and Shandong, excess capacity does exist; but in western China, the industry still has large room for development. The claim that primary aluminium industry in the whole country suffers overcapacity lacks theoretical and data supports.
The coastal regions of China have high population density, and developed industry, leading to shortage of electricity and higher electricity bills. Production of primary aluminium consumes large amount of electricity; therefore, to optimize the allocation of resources, the distribution of aluminium producers should be adjusted. The center of primary aluminium production should be moved to the resource-rich west. This adjustment is in line with laws of economics, and will help energy saving, emission reduction, and environment protection.
Storage of primary aluminium is storage of energy. The government should enlarge China’s strategic stockpile of primary aluminium.
Light-weighted, durable in use, and easy to store, aluminium products may be widely used in the production of automobiles and doors and windows of constructions. If the government builds more low-rent housings for low-income groups, primary aluminium industry will not face overcapacity; instead, it will scale new heights.