Chinese aluminum producers are accelerating their overseas expansion plans, maintaining confidence in global market demand despite new trade barriers introduced by the United States. At a recent industry conference in Suzhou, executives from leading firms such as Jiangsu Dingsheng New Materials and Henan Mingtai Aluminum emphasized that U.S. President Donald Trump’s 25% blanket tariffs on aluminum have not deterred their international ambitions. Instead, companies are establishing production bases in regions like Thailand and Europe to counteract domestic overcapacity and maintain their global market presence.
Industry leaders describe themselves as “numb to tariffs,” citing years of exposure to Western trade restrictions. He Zhigang, deputy general manager of Henan Mingtai Aluminum, noted that Chinese aluminum remains highly competitive and continues to see robust demand in markets outside the U.S. He added that the sector only needs time to adapt to the latest round of anti-dumping measures, underscoring the structural advantages of Chinese production, including cost efficiencies and economies of scale.
Despite this resilience, China’s aluminum exports fell more than 7% in the first quarter of 2025 to 1.37 million tons, a decline attributed primarily to the removal of a longstanding export tax rebate that had previously fueled outbound shipments. The industry’s response has been to pivot toward higher-value products and invest in overseas manufacturing, with companies like China Hongqiao Group and Xinfa Group commissioning new smelters in Southeast Asia and Malaysia to bypass tariffs and tap into regional demand.
The global aluminum market remains volatile, with futures trading at $2,318.75 per ton as of mid-April 2025, reflecting ongoing uncertainty from trade tensions and shifting supply chains. Chinese producers continue to dominate global output, accounting for nearly 60% of worldwide primary aluminum production. Their strategy of international expansion and market diversification is expected to sustain their influence, even as U.S. and European competitors push for stricter trade measures and carbon levies.
