China’s aluminium production edges 3% lower M-o-M but grows 7% on year to 3.22MT in June’21

According to the Shanghai Metals Market, China produced 3.22 million tonnes of aluminium in June 2021. That was down by 3.01 per cent month-on-month from 3.32 million tonnes after a hike last month. But on a year-on-year calculation, the output stood up by 7.3 per cent from 3 million tonnes.

China’s daily average output stood at 107,200 tonnes in June, up 300 tonnes a day from the previous month.

During January-June 2021, total aluminium production in China came in at 19.47 million tonnes, which was 8.1 per cent more than 18.01 million tonnes during the same period last year.

The production resumption of aluminium in Yunnan was slow in June, while the production in Gansu and Henan gradually recovered. At the same time, some places in Guizhou saw a slight reduction in aluminium production.

As of early July, China’s operating aluminium capacity stood at 38.88 million tonnes a year of the existing capacity of 43.8 million tonnes a year, leaving the operating rate at 88.8 per cent. According to SMM, aluminium liquid accounted for 68.5 per cent of China’s total aluminium output in June, basically flat on the month.

Going ahead, Yunnan’s production reduction is expected to narrow, Guangxi Baikuang and other new projects to be put into operation, and Qinghai Haiyuan, Shanxi Zhaofeng, Shanxian Hengkang, and other aluminium plants to resume production.

The monthly output is expected to reach 3.33 million tonnes, and the import volume to significantly reduce to about 50,000 tonnes. . On the demand side, aluminium extrusion and other downstream industries will enter the off-peak season in end-Q2.