China’s primary aluminium production grows 9.4% in November’22 bringing total output in 11 months to 36.77 Mt

According to the National Bureau of Statistics (NBS), China’s primary aluminium production in November 2022 escalated by 9.4 per cent year-on-year as power restrictions eased, allowing some regions to ramp up output and small smelters to commence operations. NBS data showed China produced 3.41 million tonnes of primary aluminium in November'22, which, however, was down by 1.16 per cent month-on-month from 3.45 million tonnes.

China’s primary aluminium production had grown consistently in each month of 2022 compared to the previous year when electricity consumption restrictions caused significant declines in output.

Along with the production, demand for the metal has also increased this year, especially in the construction and transportation sectors after China relaxed its COVID19 –related restrictions and the government issued new measures to support the ailing property sector. The long-term demand outlook for primary aluminium also looks robust.

The profitability of smelters also grew in November as the most-traded aluminium contract on the Shanghai Futures Exchange hiked 6.1 per cent M-o-M to an average of RMB 18,845 per tonne. Lower thermal coal prices also aided smelters in generating higher profits. According to the information provided by Mysteel, the average profit at primary aluminium smelters was RMB 1,173 per tonne, up by RMB 348 per tonne from the prior month.

"Many aluminium producers are looking to ramp up production as long as the power supply allows, given profit of more than 1,000 yuan and good demand prospects next year," a Shanghai-based aluminium trader said.

China’s average daily primary aluminium output in November was 113,667 tonnes versus 111,290 tonnes in October. In the first 11 months of the year, China’s total output amounted to 36.77 million tonnes, up 3.9 per cent from a year earlier, showed NBS.