China’s primary aluminium output hit six-year highs at 19.64 million tonnes in 1H2021: NBS

According to the data released by the National Bureau of Statistics (NBS), China’s primary aluminium output hit multi-year highs at 19.64 million tonnes in the first half of 2021. That was up by 10.1 per cent from a year ago, as smelters were encouraged by aluminium prices well above break-even levels.

According to NBS records, China’s primary aluminium production increased the highest in H1 2021 since at least 2015.

However, the production volume in June fell for a second straight month due to power limitation in the smelting hub of Yunnan, showed official data on Thursday, July 15. Smelters in Yunnan were ordered to reduce energy consumption in late May after severe drought hampered electricity generation.

The curbs remained in place for much of June, and analysts say it could take smelters in Yunnan until August to start ramping up output again.

“The lack of water in Yunnan has hit June’s number,” said Paul Adkins, managing director of the Zibo-based aluminium consultancy AZ China said. “But AZ China does not expect the water shortage to affect Q3 production numbers, as those pots are now back to full speed, or on their way back.”

For June, China churned out 3.29 million tonnes of primary aluminium, 0.90 per cent down from 3.32 million tonnes in May but up 9.3 per cent year-on-year.

Daily average production was around 109,667 tonnes versus 107,000 tonnes in May (30 days).