China’s primary aluminium output declines nearly 1% in May 2021 due to power restrictions in Yunnan

China’s primary aluminium production fell month-on-month in May 2021 as restrictions on power consumption in the smelting hub of Yunnan forced production cuts, showed the National Bureau of Statistics on Wednesday, June 16.

The world’s top producer of the metal produced 3.2 million tonnes in May, down 0.8 per cent from April’s record high output of 3.346 million tonnes but up 11.3 per cent on year.

Daily average output in May stood 3.95 per cent lower at about 107,100 tonnes a day in May compared to 111,500 tonnes in April (30 days a month).

Yunnan province in Southwest China was affected by severe drought last month, resulting in limiting its ability to generate electricity. It subsequently restricted aluminium producers’ power use, forcing some smelting capacity to be temporarily closed.

Fu Xiao, a strategist at BOCI Global Commodities, said that up to 750,000 tonnes per year of operational aluminium smelting capacity had so far been affected in Yunnan.

“Although power restrictions could be lifted by late June, it could take smelters up to August before starting to ramp up due to logistical constraints,” Fu Xiao told the CRU World Aluminium Conference on Tuesday.

Meanwhile, output of 10 nonferrous metals, including copper, aluminium, lead, zinc and nickel, was 5.45 million tonnes in May, said the statistics bureau.