
Aluminium production in China stood at 3.472 million tonnes in May 2023 (31 calendar days), reflecting year-on-year growth of 1.08 per cent, found the Shanghai Metals Market survey. China’s total output from January to May totalled 16.742 million tonnes, a year-on-year increase of 3.36 per cent. The daily production also rose by 404 tonnes from the previous month to around 112,000 tonnes.

SMM survey indicated the growth rate of aluminium production capacity was weak in May due to a few recommencements of smelter operation in Guizhou. However, with new capacity coming online in the Northwest and Southwest regions, the share of molten aluminium output at domestic smelters registered a record high of 75.5 per cent.
In May 2023, operations of aluminium smelters remained unchanged, except for that in Guizhou where the pace of production slowed down, with the resumption of production capacity at about 180,000 tonnes. However, enterprises in Zunyi and Liupanshui fully resumed production. Overall, the aluminium operating rate in China was recorded at 90.4 per cent during May 2023.
Currently, 200,000 tonnes of pending production capacity are to be resumed in Guizhou and Sichuan, while in Yunnan, a possible restart will be monitored in late June on increased rainfalls. SMM estimates the capacity of nearly 2 million tonnes in Yunnan will fail to resume production in the short term. But the overall operating aluminium production capacity is likely to increase to around 41.5 million tonnes by the end of June, with the output in 30 days to be about 3.37 million tonnes, learned SMM.
The demand for downstream aluminium had a mixed performance in May, with aluminium plate/sheet, strip, foil and extrusion operating rate declining Y-o-Y. However, more new production capacity of aluminium billet came into operation, and the proportion of molten aluminium output continued to be high.
AL Circle’s report on “Global Aluminium Industry Outlook 2023” indicated that China’s domestic demand for aluminium would experience mid-term hiccups on slowing economic growth but would moderately increase in the long term.
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