China’s primary aluminium production rises 5% Y-o-Y to 5.69 million tonnes during Jan-Feb

According to the National Bureau of Statistics on March 14, China’s primary aluminium production between January and February came in at 5.69 million tonnes. This represents a 5 per cent year-on-year increase, but a plunge by 2 per cent on a daily basis from December’s record rate.

The bureau typically does not provide individual output numbers for those two months due to distortion from the timing of Chinese New Year. Chinese aluminium smelters, however, keep running throughout the week-long holiday. 

Per the statistics reported by Reuters, China’s daily average output stood at around 96,400 tonnes between January and February, down from 98,420 tonnes in December. This decline in China’s daily average output shows the impact of persistently low Chinese aluminium prices on smelters. The primary aluminium prices are still below the average break-even level of RMB 14,000 per tonne.

Zhang Rufeng, a manager at consultancy Baiinfo, estimated that 406,000 tonnes of annual aluminium production was closed in China in January and February. 

However, China Hongqiao Group, the world’s biggest aluminium producer, shrugged off low prices and restarted some of its pots at the beginning of February after winter environmental restrictions expired. 

The remainder of the winter curbs on industrial output in northern China is due to end on Friday.