The electrolytic aluminum industry, burdened by excessive overcapacity, lost 670 million yuan ($109 million) in the first half of this year.

The Ministry of Industry and Information Technology said that it will introduce specific measures to deal with the surplus capacity in the industry in the latter half of 2013.

The industry faces three challenges according to a report released by the ministry on Wednesday: overcapcity, high production costs and exports still not tailored for sluggish global demand.

The ministry predicts that nonferrous materials' prices will fluctuate at low levels with minimal profits for the next half year.