China Key Aluminum Smelters 2003 Output Forecast

China is expected to produce 5.3 million metric tons of aluminum in 2003, up from 4.4 million metric tons last year, analysts at state-owned Beijing Antaike Information Development Co have announced.

Most Chinese aluminum producers were raising output this year as expanded lines came on stream, unfazed by expensive raw material and power shortages in some areas.

Others like Chalco, China's biggest aluminum producer, were keeping production steady at last year's levels.

In February, Chalco -- China's monopoly alumina producer -- raised prices of the raw material by 18 percent to $314.1 a metric ton due to a shortfall in domestic supply and higher import prices.

Although some analysts doubt the output targets would be met due to rising production costs, Chinese aluminum producers say they have ways to tackle the problem.

Shangdian Aluminium Co and Wanji Aluminium Co, run by local power firms based in the central province of Henan, said rising alumina prices would not affect production and expansion plans.

Shangdian would complete its expansion to raise aluminum capacity to 360,000 metric tons per year next year from 115,000 metric tons now, said a company official.

"The capacity increase by 120,000 tons per year will be finished by the end of this year. After our expansion is completed next year, our total capacity will reach 360,000 tons per year," he said, but declined to elaborate.

Company officials said Wanji would run at full capacity of 190,000 tons per year by the middle of this year, while Baotou's capacity would rise to 215,000 tons per year from 135,000 tons per year by the end of the year.