China slashes key metals growth target amid overcapacity curbs

China has slashed its annual output growth target for key non-ferrous metals over 2025 and 2026, underscoring a policy shift from volume expansion to efficiency and sustainability.

Production of the 10 main non-ferrous metals, including copper and aluminum, is now expected to rise by an average of 1.5% a year in the period, according to a Ministry of Industry and Information Technology statement on Sunday. That compares with the 5% pace set in the previous two-year blueprint.

The scaled-back ambitions reflect Beijing’s effort to pursue industry upgrades and decarbonization efforts, as it also seeks to rein in oversupply. Years of rapid capacity additions in aluminum, copper and battery materials have led to periodic gluts and profit squeezes.

At the same time, Beijing is putting more weight on recycling, aiming for annual secondary metal output to exceed 20 million tons by 2026, and broadening support for reuse of waste batteries, solar panels and other scrap materials.

The roadmap also seeks to achieve breakthroughs in high-end products such as ultra-high purity metals and advanced rare earth materials, while helping companies cope with trade measures by foreign countries and enhance global competitiveness.

Copper rose 2.3% to settle at $10,414 a metric ton on the London Metal Exchange at 5:50 p.m. London time. Other LME metals, including aluminum and zinc, also rose.

Share prices of Chinese metals producers rose on Monday in Hong Kong, with Jiangxi Copper Co. gaining as much as 5%, and Aluminum Corp. of China Ltd. also climbed more than 5%.

(By Jessica Zhou)