Output growth in aluminum loses its steam

The rapid expansion of electrolytic aluminum production in China has lost steam, following the government's decision to eliminate overcapacity in the industry, hot on the heels of similar moves in the steel and coal sectors.

Electrolytic aluminum output reached 2.69 million metric tons in July, a drop of 0.3 percent year-on-year, the National Bureau of Statistics reported on Monday.

"This is the first year-on-year drop since the beginning of the year, which means the policy of capacity elimination in the sector has started to take effect," said Che Hongyun, chief analyst at SDIC Essence Futures.