China aluminium output grows to overshadow a shrinking global deficit in Q1 FY2018

The latest data from Wold Bureau of Metal Statistics (WBMS) showed that the global primary aluminium market was in a deficit in the first quarter of the current calendar year. The deficit however, has narrowed down to 356,000 tonnes from a staggering 1.12 million tonnes in the entire 2016.

The worldwide primary aluminium demand was up by 1.15 million tonnes from the corresponding period previous year to stand at 15.05 million tonnes during January-March 2017.

While this easing out of primary aluminium deficit by 764,000 tonnes (year-on-year) helps bring some relief for the global aluminium industry players, China’s aluminium output data again takes that away. The country with its 8.2 million tonnes primary aluminium output recorded in the first quarter of 2017 signals at a global surplus which is likely if its capacity cut plans in November are not put into action.

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According to the National Bureau of Statistics (NBS) data, aluminium output in China increased to reach 2.77 million tonnes in April this year, up 7.6 per cent from the same period in previous year.

Aluminium output in the country totalled 10.97 million tonnes during the initial four months of 2017, up 10 per cent year-on-year.