China cuts loans to aluminium firms

Global aluminium prices may rise after China, the world’s biggest producer of the lightweight metal, said it will curb output to try to prevent a repeat of power shortages next year.

China has cut loans to aluminium producers by forcing them to invest 35% of their capital in new projects, up from 25%.

The next step is to abolish an 8% export rebate on the metal to squeeze out smaller producers after power shortages this year caused blackouts, said the China Nonferrous Metals Industry Association, a government body.