The long-term Chinese demand for alumina holds the key. China's alumina imports have zoomed by nearly 88 per cent from 1.8 million tons in 2000 to 3.38 million tons in 2002. Further, the country has reduced the import duty on alumina from 18 per cent to 12 percent. As a result, the global players are expecting China to be a major spot buyer of alumina in the international market. However, any drop in consumption in the Chinese markets might also destabilise the prices in the region. Nalco proposes to capitalise on a spurt in demand for alumina in China by exploring the possibilities of direct exports of alumina. The company would also explore such possibilities to Russia and the countries in the Middle East. The company has tasted initial success with plans to supply about 100,000 tons of alumina annually to China's Minmetals Group over the next three years. Currently, Nalco's exports are channelled through international trade houses. Ditto for aluminium consumption. The rise of the middle class, massive infrastructure needs and spurt in FDI inflow have driven up the demand for aluminium in China. The country's domestic aluminium market is expected to grow by 12 to 15 pr cent pre annum for next few years. As a result, China is planning to add about 3 million tons of new capacity over the next five years. About 30 producers in 17 different provinces of the country have planned capacity expansions to meet the growing demand.