China’s aluminium output hikes by 4.8% to touch annual record high in 2021 even amid power restrictions

China's annual aluminium output increased by 4.8% from the previous year to a new high of 38.5 million tonnes in 2021, according to government statistics released on Monday, despite energy consumption restrictions set last year to fulfil climate targets.

The National Bureau of Statistics (NBS) reported that primary aluminium output in December was 3.11 million tonnes, up marginally from 3.10 million tonnes in November but down 4% year on year.

According to Reuters' calculations, December output was about 100,300 tonnes per day, down from roughly 103,300 tonnes in November - the lowest daily pace since July 2020.

"In 2021, we had a strong first half, but the energy shortages and coal problems handicapped the growth. We expect minimal increase in production (in 2022) due to similar reasons. We expect demand to exceed supply in 2022, leading to increased imports,” said Paul Adkins, managing director of aluminium consultancy AZ China.

Due to government attempts to reduce power use amid a supply shortage, energy-intensive aluminium manufacturing in several Chinese provinces was reduced last year.

Meanwhile, the output of ten nonferrous metals, including copper, aluminium, lead, zinc, and nickel, was 5.47 million tonnes in December, up from 5.35 million tonnes in November but down 3.8% year on year, according to the statistics office.

The annual output of the 10 nonferrous metals in 2021 was 64.54 million tonnes, a new high and up 5.4% from the previous year's 61.68 million tonnes. Tin, antimony, mercury, magnesium, and titanium are the other metals in the group.