China’s aluminium production in 1Q2023 improves 4.8% Y-o-Y to 9.92 million tonnes: SMM

According to the Shanghai Metals Market survey, China’s aluminium production in March 2023 (31 calendar days) stood at 3.41 million tonnes, registering an increase of 10.35 per cent month-on-month from 3.09 million tonnes. The data indicates that the monthly rise in March output brought it to the level of January when the domestic aluminium production was 3.42 million tonnes.

On an annual basis, China’s aluminium production in March’23 increased by 2.87 per cent from 3.315 million tonnes. China’s aggregate output of aluminium in the first three months of 2023 totalled 9.92 million tonnes, up 4.8 per cent from a year ago.

However, the daily average output in March dipped 400 tonnes from the previous month to come in at 110,000 tonnes as enterprises in Yunnan reduced production, and the output increase in Guizhou and Sichuan was minimal.

According to SMM statistics, the proportion of aluminium liquid increased 8.3 percentage points M-o-M and 8 percentage points year-on-year to around 71 per cent in March.

Domestic aluminium capacity increased slightly in March as some smelters in Guizhou, Sichuan, and Guangxi resumed production with a total capacity of 220,000 tonnes. Besides, the capacity transfer in Guizhou and the new capacity commencement of Sichuan Guangyuan Zhongfu contributed around 140,000 tonnes to the growth in the said month.

By the beginning of April, domestic installed capacity reached 45.25 million tonnes, with operating capacity of 40.23 million tonnes and an operating rate 0.8 percentage point higher at 88.9 per cent.

Due to the improving downstream demand, social inventories of aluminium fell 180,000 tonnes in March, and are expected to extend further in April reaching 880,000 tonnes. However, the aluminium billet inventory is recommended to keep a check, given the sharp output rise of billets and weak downstream consumption of construction extrusion.