China to rein in copper, alumina capacity expansion under next five-year plan
China will tighten oversight of new copper and alumina projects to curb irrational investment and disorderly expansion from 2026 to 2030, the country’s top economic planner said on Friday.
In an article on its website, the National Development and Reform Commission (NDRC) said local governments must strengthen feasibility studies for major projects and align their approvals with national industrial policy.
The guidance targets copper and alumina, industries the commission said are key to economic and military development but whose development must take into account “differences in regional industrial bases, resource endowments and environmental capacity.”
China will also encourage mergers and restructuring led by large firms to increase industry concentration and competitiveness, the NDRC said. In addition, Beijing will continue to support overseas mining investment in its next five-year plan.
China is the world’s largest producer and consumer of copper and alumina and has repeatedly warned of the risks of overcapacity and unchecked investments in the industry.
China suspended plans for around 2 million metric tons of planned copper smelting capacity, the China Nonferrous Metals Industry Association said last month.
From January to November of 2025, China produced 13.3 million metric tons of refined copper, up 9.8% from a year earlier, on track for record refined copper output in 2025.
Alumina output in China reached 84.7 million tons in the same period and was also likely to set a record in 2025.
The most traded copper contract on the Shanghai Futures Exchange closed daytime trading up after hitting a record high of 99,730 yuan earlier in the session.
Shanghai aluminum closed the session higher after hitting a near-four-year high of 22,640 yuan.
Major copper firm Jiangxi Copper rose 10%. Yunnan Copper rose as much as 8.68% and Tongling Nonferrous Metals Group gained as much as 8.33%.
Aluminum heavyweight Aluminium Corporation of China rose as much as 8.94%.
(Reporting by China C&E Team; Editing by Thomas Derpinghaus)
China steel group urges domestic pricing in iron ore contracts
China’s top steel industry group has urged the state-backed iron ore trader, China Mineral Resources Group Co., to push for using domestic price benchmarks in supply talks with major miners including BHP Group and Rio Tinto Group.
A newly launched port-side spot price index should become a core pricing reference for the market, the China Iron and Steel Association said in a statement on its website on Saturday. It added CMRG should seek to use the gauge in long-term contract negotiations with major mining firms.
The statement, based on comments made by CISA vice chairman Luo Tiejun at an industry conference on Dec. 18, underscore a continued effort to shift pricing power back toward China. The country consumes most of the world’s seaborne iron ore, but has complained that prices are still largely set using US-dollar benchmarks influenced by overseas futures markets.
CMRG, which was set up in 2022 to give China more bargaining power with big miners, has taken a more assertive approach this year, including restricting purchases of certain products from BHP after long-term contract talks stalled. It is now negotiating supply deals with other miners for next year, aiming to secure more favorable terms for steel mills.
Luo also flagged that spot trading — the buying and selling of iron ore for immediate delivery — has highlighted tensions in the market, noting there have been periods when long-term contract prices ended up higher than spot prices. He said spot prices remain essential as they reflect real supply and demand but should serve mainly as a reference for long-term contracts.
(By Katharine Gemmell)
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