China’s primary aluminium production hits 20-year high, thanks to rising profitability for smelters

According to the National Bureau of Statistics (NBS), China's primary aluminium production in July 2024 hit a more than two-decade high, with producers ramping up operations, particularly in Yunnan.

China, the world's biggest aluminium producing country, churned out 3.68 million tonnes of primary aluminium, a 6 per cent increase year-on-year and the highest monthly output since at least 2002.

The continued increase in the monthly production of primary aluminium in China could be attributed to new projects coming online in the northern region of Inner Mongolia in late Q2 2024, while smelters in other regions maintain strong production due to market profitability.

Data from a Beijing-based aluminium consultancy, ALD, showed that the industry's average profit in June 2024 stood at about RMB 4,000 per tonne ($558.78/t), the highest since the beginning of 2022.

"The better-than-expected profits prompted smelters to produce," said Su Yanbo, an aluminium analyst at ALD.

According to NBS data, China's daily output averaged 118,710 tonnes in July, down by 122,333 tonnes in June.

In the first seven months of 2024, China's primary aluminium output totalled 25.19 million tonnes of aluminium, registering a 6.7 per cent increase from a year earlier.

The consultancy firm expects the aluminium industry's profitability to remain stable, driving up metal output in the coming months.