China’s aluminium production in November 2022 grows 9% YoY on capacity boost in Sichuan and Inner Mongolia

China’s aluminium production in November 2022 (30 calendar days) amounted to 3.34 million tonnes, which reflected an increase of 8.7 per cent year-on-year, found the Shanghai Metals Market. But on a month-on-month calculation, the output stood 2.05 per cent lower than 3.41 million tonnes (31 calendar days). That indicated aluminium production in November’22 saw both increase and decrease; however, the growth was more significant based on rising production capacity due to the resumption of smelters in Guangxi and Sichuan.

Despite the downfall in monthly production in November, China’s daily aluminium output rose from 110,100 tonnes to 111,200 tonnes. China’s total aluminium production from January to November stood at 36.64 million tonnes, up by 3.7 per cent from the same period last year.

About 230,000 tonnes of capacity was resumed in Guangxi, while 140,000 tonnes grew in Sichuan M-o-M to 500,000 tonnes. In addition, operation capacity of Inner Mongolia Baiyinhua increased to 150,000 tonnes in November and Phase II of Gansu Zhongrui’s project was put into production by the end of November.

However, due to the winter heating season, some enterprises in Henan and Shanxi reduced production, with a total output decline of about 120,000 tonnes. The shipment of aluminium rods and other primary processed products was sluggish. The processing costs also dipped, leading some aluminium processing enterprises cut production. The proportion of aluminium liquid fell 0.59 per cent over a month to 69.16 per cent.

According to SMM statistics, domestic aluminium production capacity reached 45.26 million tonnes by the beginning of December, with an operating capacity of 40.59 million tonnes. Some enterprises in Sichuan and Guangxi resumed production, but going ahead, it would most likely slow down due to power shortages and high energy costs. Operating capacity at the end of December is likely to come in at 40.89 million tonnes, with output expected to rise 9 per cent Y-o-Y to 3.46 million tonnes.