(Yicai Global) March 22 -- The vast size of China's aluminum means it undoubtedly affects the global market, and every move could change worldwide trends, Vladislav Soloviev, president of the world's second-largest aluminum firm United Company Rusal Plc, told Yicai Global in an exclusive interview.

China's aluminum industry has been resolving overcapacity for years and is achieving results, Soloviev added. In 2017, there was strong evidence that supply-side reforms were carried out in the industry in China, he said. Soloviev believes unlawful under-construction projects and 10 million tons of illegal capacity have been phased out, and that action taken to curb pollution across 28 northern cities will see capacity cut by about one million tons of metal and 4.4 million tons of aluminum oxide a year.

Most aluminum shelters closed during the winter production cuts, but Soloviev doubts production capacity will bounce back at the right time in future. The producers haven't resolved their pollution problems and as costs to restart production are high, they will not be able to return to the market immediately.

China's aluminum industry is at a crossroads, and maintain production control is crucial, he continued. If it maintains control, avoids large-scale production recovery, controls semi-finished product exports to achieve a recovery in aluminum prices and profits, it may lead to a balance in supply and demand and increase profitability, reducing the debt burden and increasing spending on research and development to improve environmental performance.