China’s daily aluminium output grows M-o-M to 105,000 tonnes in Feb’22 amid new operating capacities or resumption

China’s aluminium production in 28 days of February 2022 reflected a positive trend with a daily average output of 105,000 tonnes, up by 2,000 tonnes from 103,000 tonnes a month earlier. Total production in the month came in at 2.95 million tonnes versus 3.204 million tonnes in January (31 days).

However, on a year-on-year basis, the output dipped 2.3 per cent from 3.02 million tonnes, showed the Shanghai Metals Market data. Output in the past two months of 2022 amounted to 6.15 million tonnes, which was also down by 3 per cent from 6.34 million tonnes of production during the same period last year.

The increase in daily average production leading to a stable flow of monthly output in February could be attributed to the recommencement of production at aluminium smelters or the beginning of new capacities throughout the month. In Yunnan, the operating aluminium capacity rose significantly, thanks to the support of the government and China Southern Power Grid.

Throughout the month, a combined capacity of 740,000 tonnes was resumed or newly put into production in Yunnan. In provinces like Inner Mongolia, Guizhou, Shanxi, and Guangxi, production with a total capacity of 276,000 tonnes began.

As of early March 2022, China’s domestic aluminium operating capacity reached 38.98 million tonnes, with a valid installed capacity of 44.52 million tonnes. Hence, the average operating rate stood at 87.5 per cent.

On the supply side, Yunnan is expected to contribute another 440,000 tonnes of aluminium operating capacity in March. Operating capacities (including new and resumption of old) in other regions are estimated to come in at 120,000 tonnes. With the rising trend of the average daily output, aluminium production in March is anticipated to reach about 3.3 million tonnes.