FX.co ★ China Scales Back Metals Expansion to Curb Overcapacity

China has adjusted its annual growth target for the production of key non-ferrous metals for 2025-26, marking a strategic shift from rapid expansion to prioritizing efficiency and sustainability. The output for the 10 primary non-ferrous metals, including copper and aluminum, is projected to increase by an average of 1.5% per year, according to the information from the Ministry of Industry and Information Technology released on Sunday. This figure represents a decrease from the previous plan's 5% growth rate. The ministry emphasized that this change underscores a commitment to "high-quality development," with a stronger focus on energy efficiency, recycling, and reducing emissions. China is under increasing pressure to tackle overcapacity, reduce carbon emissions, and stabilize global commodity markets. This moderated growth outlook is also in line with Beijing’s broader economic strategy to pivot towards advanced manufacturing and clean energy. Officials have vowed to pursue technological enhancements, increase the use of secondary metals, and strengthen supply chain security—measures that analysts believe could mitigate the risk of oversupply in markets such as aluminum.