Released on = May 22, 2007, 4:25 am

Press Release Author = Shushmul Maheshwari

Industry = Industrial

Press Release Summary = Chinese aluminium industry is encountering serious problem
of overcapacity. Besides this, the utilization rate of the industry remained just
75% as of 2005 - indicating a considerable amount of idle capacity.

Press Release Body = In its recent report on “China Non-Ferrous Industry
Analysis”, RNCOS has found that China’s Aluminium industry is facing
serious glut. Moreover, aluminium industry’s utilization rate is just 75% (as
of 2005), which implies a significant amount of unused capacity.

Overcapacity has emerged as an eminent problem over the past few years along with
added production through newly finished projects in sectors such as electrolytic
aluminum, coke, ferroalloy, steel, copper smelting, and calcium carbide. Price of
steel, for example, continued to drop since the 2Q 2005, which was attributed to an
excess of production capacity surpassing the demand.

At year-end 2006, annual aluminium production capacity of China was 12 Million Tons
and by January this year (2007) it had reached 11 Million Tons. This indicates that
aluminium mills in the country are operating at nearly full capacity, said CNMIA, as
reported by RESOURCE INVESTOR on March 9, 2007.

It’s expected that in spite of working at 20% below capacity, the country is
still going to produce 8% above forecasted consumption, assuming 25% rise in
domestic consumption this year (2007). Output of primary aluminium in China is
expected to cross 12 Million Tons mark this year, 27.7% up from 2006. Antike –
a Beijing based information provider for the mining & metals industry of China
– has forecasted that there is going to be a worldwide overcapacity of 300,000
Tons of the metal.

According to the RNCOS report on “China Non-Ferrous Industry Analysis”,
“Since 2002, aluminium production in China has shown intimidating growth. It
grew by over 100% in 2006, as compared to the growth in global production of the
metal that remained 12.79% over the same period.” The report further adds,
“Chinese aluminium industry is concentrated with numerous companies lacking in
economies of scale & running at low efficiency.”

The report further provides extensive research and objective analysis of Non-Ferrous
Industry In China. This report helps clients in analyzing the opportunities critical
to the growth of The Non-Ferrous Industry In China. Issues covered in this report
include: the impact of Chinese non-ferrous industry on the global non-ferrous
industry, opportunities and challenges before the China non-ferrous industry, etc.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM507.htm
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Web Site = http://www.rncos.com

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com