China’s primary aluminium output up by 6.13% Y-o-Y to 3.19 million tonnes: SMM

According to the latest report revealed by the Shanghai Metals Market, China’s primary aluminium production recorded a rise of 6.13 per cent year-on-year to stand at 3.19 million tonnes in August 2020. As of the end of August, the country had 37.62 million tonnes of capacity in operation among 42.48 million tonnes per year of existing capacity.

Operating rates across major Chinese primary aluminium producers stood at 88.6 per cent, owing to the commencement of new capacities in Yunnan and Sichuan. The daily average primary aluminium output rose 2,200 tonnes from July to 103,000 tonnes in August.

During the first eight months of the year, China’s primary aluminium output totalled 24.32 million tonnes, up 3.19 per cent year-on-year, while consumption came in at 24.56 million tonnes after rising by 3 per cent.

Social inventories of primary aluminium increased a little over the month as supply rose slightly on commissioning of new capacities and inflow of imported aluminium ingots amid moderate downstream demand. New capacities in Inner Mongolia, Yunnan, and Sichuan will be put into operation as scheduled in September, lifting annual operating capacity to about 37.72 million tonnes.

SMM expects China’s primary aluminium output to stand at 3.1 million tonnes in September, up 7.19 per cent year-on-year. However, the year-on-year increase in consumption is estimated to narrow to 4.35 per cent.

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