Archive · 29 Jan 2026
China Caps Aluminium Capacity at 45 MTPA
China, which used to make a lot of aluminium, has decided not to make more than 45 million tonnes per year.
This is because they want to be more environmentally friendly.
Because of this, the price of aluminium has gone up.
In India, companies like NALCO, Hindalco, and Vedanta Ltd make aluminium.
NALCO is doing well because it makes alumina, which is used to make aluminium, very cheaply.
They are also planning to make more aluminium in the future.
However, the price of aluminium can change, so it's not certain how well these companies will do in the long run.
China has capped its aluminium capacity at 45 MTPA to focus on decarbonisation and reduce pollution.
This has led to a significant increase in global aluminium prices, from $2,300/tonne to $3,140/tonne.
Indian aluminium smelters like NALCO, Hindalco, and Vedanta Ltd have benefited from the price increase.
NALCO is one of the lowest-cost producers of alumina in the world and has plans to expand its capacity.
However, the future performance of these companies is uncertain due to volatile aluminium prices.
- Who
- China, NALCO, Hindalco, Vedanta Ltd
- What
- China has capped its aluminium capacity at 45 MTPA, impacting global aluminium market and benefiting Indian aluminium smelters like NALCO
- When
- China's Action Plan was released on 28 March 2025, and US imposed tariffs in July 2025
- Where
- China, India, Global
- Why
- To emphasize decarbonisation and reduce pollution, leading to higher aluminium prices and benefiting Indian smelters
- China's Aluminium Capacity
- 45 MTPA by 2025
- Global Aluminium Capacity Share
- Nearly 60%
- NALCO's Alumina Refinery Capacity
- 25% of India's total
- NALCO's Aluminium Metal Production Share
- 11% of India's total
- NALCO's Alumina Production
- 2.3 MTPA
- NALCO's Smelting Capacity
- 0.46 MTPA
- NALCO's Revenue Growth
- Doubled from FY21 to FY25
- Aluminium Price Increase
- From $2,300/tonne to $3,140/tonne
