While markets such as copper or iron ore have been revolutionised by Chinese
demand, in aluminium the revolution has been the astonishing growth of Chinese
production. A relatively minor producer of 2.8m tonnes in 2000, it is now the
market’s dominant force, with 17.8m tonnes of output last year, or 40 per cent
of the world total, according to the International Aluminium Institute.
The country in theory faces one hurdle. “Aluminium production is
energy-intensive, and China is at a competitive disadvantage in terms of
electric power supplies,” Mr Albanese wrote in 2007, arguing that this would
lead to higher prices.
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