China’s primary aluminium production drops 1.5% M-o-M to 3.23 million tonnes; Output grows 1.25% Y-o-Y

According to the Shanghai Metals Market, China’s primary aluminium production in August 2021 dropped 1.52 per cent month-on-month to stand at 3.23 million tonnes. But on a year-on-year calculation, the output edged 1.25 per cent higher than 3.19 million tonnes. Aluminium liquid accounted for 66.7 per cent of China’s total aluminium output in August, a decrease of 0.3 percentage points from the previous month.

From January to August, China’s primary aluminium production totalled 25.97 million tonnes, 6.78 per cent more than 24.32 million tonnes during the same period last year.

The daily output averaged 104,000 tonnes, down 2,000 tonnes a day month-on-month but up 1,000 tonnes a day on year. The drop in daily as well as China’s monthly aluminium production could be attributed to the production restrictions in Guangxi and Xinjiang. Besides, the previously affected production capacity by dual energy consumption control and lack of electricity could not recover. Production in Xinheng, Hengkang and Zhaofeng resumed production with a combined capacity of only 150,000 tonnes a year.

SMM data also showed that as of September 2021, China’s operating aluminium capacity stood at 38.15 million tonnes a year, leaving domestic operating rate at 87.2 per cent. SMM sees no growth in operating capacity in September. Aluminium output is expected to continue to record downfall to 3.11 million tonnes in the said month.

The demand of downstream aluminium processing sector such as building materials will pick up slightly from the previous month due to traditional high, but may drop slightly on year. Domestic inventory is likely to remain at a low level of 740,000 tonnes in September, and the consumption growth in the month is expected to decrease by 1.68 per cent year-on-year.