China's primary aluminium output stands at 2.9 mt in November; YTD output drops 2.14% to 32.39/t
According to Shanghai Metals Market, China’s primary aluminium production fell 0.81% from a year ago to 2.94 million tonne in November. Output in January-November stood at 32.39 million tonne, which registered a drop of 2.14% year-on-year.
Better pricing, higher demand and high profits margins led to the resumption of some primary aluminium capacity in November. SMM survey found that the average profit for producing per tonne of primary aluminium crossed RMB 600 per tonne in November. During November end, primary aluminium capacity in operation climbed to 35.9 million tonne per year.
Operating capacity of aluminium is likely to increase further in December with new capacity coming online in in Yunnan, Sichuan, and Inner Mongolia. After 12 consecutive months of decline year on year, December is likely to register a yearly increase in domestic primary aluminium output.
SMM expects China’s primary aluminium production to stand at 3.05 million tonne in December, up 1.94% year on year. At this rate the yearly production for 2019 is likely to be about 35.44 million, 1.8% less, compared to 36.5 million tonnes in 2018. Primary aluminium consumption in will amount to 36.07 million tonne, down 1.53% year on year.
Inventories across social warehouses will continue to shrink in December at a slower pace.
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