China will introduce new policies for aluminum and copper producers in 2006, the National Development and Reform Commission (NDRC) said Friday in a notice that provided a summary of the government's plans for the industries.

Further measures to control capacity expansions and over-investment in the industries have been expected for several months, but the statement contained little new information and market participants said it was a reminder from the government about its stance toward the industries.

In the aluminum and alumina sectors, the NDRC said controls on production will be strengthened by enforcing entrance standards, restricting new projects and preventing over-expansion. Beijing also will support upstream and downstream integration so aluminum smelters can form "complete production chains," and will encourage joint ventures between aluminum smelters and power plants.

Controls over aluminum exports will continue, and companies will be encouraged to form alliances to negotiate for copper concentrate and alumina. A registration scheme for copper concentrate imports will be introduced, similar to systems already in place for copper cathode, iron ore and other commodities.

Beijing also will encourage the recycling of aluminum and copper scrap, the statement said.

While no specific policies were announced, speculation is rife that the government plans to double the export tax on aluminum to 10 percent next year. "After canceling toll trading benefits, there is nothing else they could do to exports but to raise export taxes," a Shenzhen-based analyst said.

China's aluminum exports began to decline in the third quarter, falling 3.4 percent year-on-year to 987,602 tonnes for the first 10 months of the year. But producers might continue to ship aluminum out of China as London Metal Exchange prices are higher than domestic prices, market participants said.