
In July 2021, China produced 3.28 million tonnes of aluminium, which stood 1.86 per cent higher month-on-month from 3.22 million tonnes and 5 per cent on year from 3.12 million tonnes. However, the average daily output edged lower on a month by 1 per cent to 106,000 tonnes in July.

The output totalled 22.75 million tonnes from January to July, an increase of 7.65 per cent from 21.13 million tonnes during the same period last year.
The dip in daily average output could be attributed to the power curtailment and flood in Henan that caused two local aluminium plants to reduce or suspend production.
In early August, China’s operating aluminium capacity stood at 38.53 million tonnes a year of the existing capacity of 43.68 million tonnes per annum. According to SMM survey, aluminium liquid accounted for 66.7 per cent of China’s total aluminium output in July, a decrease of 1.6 percentage points from June.
SMM estimates aluminium production to reduce to around 3.27 million tonnes in August, as the reduced production due to power curtailment would be hard to recover and the new capacities in south-west China would be unlikely to see output. The import volume is expected to be around 50,000 tonnes.
The inventories of aluminium ingot in consumption areas are expected to further decrease in Q3 and fall to around 700,000 tonnes in the end of August. The year-on-year consumption growth rate is expected rise to 1.17 per cent.
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