China’s primary aluminium output in August drops 3% M-o-M to 3.16 million tonnes on strict production restrictions: NBS

The National Bureau of Statistics showed on Wednesday, September 14, that China’s aluminium output in August fell for the fourth straight month, attributing to tight restrictions on metal production and power usage.

As per the data, the world’s top aluminium producer churned out 3.16 million tonnes of primary aluminium in August, down 3.2 per cent from 3.263 million tonnes in July but up 0.4 per cent year-on-year.

Many regions in China suffering from power shortages or under pressure to reduce carbon emissions ordered smelters to cut back production. A prefecture in the western Xinjiang region, a home to almost one-fifth of the country’s primary aluminium capacity, directed five major smelters last month to cut 10% monthly output levels for August-December.

That brought total cuts in China so far this year to 2.33 million tonnes per annum, pointed out Antaike, a state-backed research house.

In September, Yunnan province in Southwest China also ordered smelters to keep their monthly average output lower during September-December compared to the production levels in August.

"(This) is likely to get worse in the coming months," said Paul Adkins, managing director of aluminium consultancy AZ China.

"We understand even some new projects and some re-starts have been put on hold. We were expecting a pick-up in capacity in Q4, but that won't happen now," added Paul Adkins.