China's oversupply of aluminum may escalate in the second half of 2013 as more new capacity is set to come on stream, further reducing the need for imports by the world's top consumer and producer of aluminum.
According to official data, the country's aluminum imports have already tumbled 67% in the first half from a year earlier.
China's mounting supplies would also weigh on domestic prices, which AL-A00-CCNMM have fallen more than 5% so far this year, said Zhang Chenguang, analyst at information provider SMM.
Meanwhile, Beijing has tried unsuccessfully to limit aluminum capacity and last month further tightened regulations for new and existing smelters.
Analysts and smelter sources said the regulations would not cut production this year, but would limit expansion in the longer term.
News Date 8/8/2013 1:13:30 PM reported by Tracy Niu