China’s primary aluminium production climbs 2.15% month-on-month to reach 3.32MT in May 2021

China’s primary aluminium production climbed month-on-month to stand 2.15 per cent higher in May 2021, found the Shanghai Metals Market. According to the data, the output in May (31 production days) stood at 3.32 million tonnes against 3.25 million tonnes in April (30 days). On a year-on-year calculation, production in May stood 7.95 per cent higher.

Total output during January-May amounted to 16.25 million tonnes, reflecting an increase of 8.3 per cent year-on-year.

Yunnan’s electricity curtailment policy resulted in a reduction of 865,000 tonnes of annual production capacity in the province. In Inner Mongolia, around 130,000 tonnes of production capacity was reduced as dual control of energy consumption became stricter.

On the other hand, new capacity started. Gansu Zhongrui witnessed output in mid-May, while Shanxian Hengkang is expected to see production in early July. In early June, China’s primary aluminium operating capacity stood at 38.79 million tonnes out of 43.6 million tonnes per year of existing capacity.

In the entire month of June, however, operating capacity is expected to decline further, with domestic aluminium output drop to 3.21 million tonnes but the annual operating capacity to rise to 38.99 million tonnes. The import volume is estimated to be around 160,000 tonnes in the said month.