China’s primary aluminium production shrank in February to 2.87 million tonnes: SMM
According to Shanghai Metals Market, the primary aluminium production in China shrank to 2.87 million tonnes in February, but year-on-year it was up by 6.9 per cent. Operating rates were down by 0.2 percentage point from the end of January to 89.3 per cent, as newly-commissioned projects were still ramping up.
As of the end of February, the total primary aluminium capacity in operation was 36.6 million tonnes in China, while the existing capacity was 40.99 million tonnes on an annualised basis.
China’s total primary aluminium production in the first two months of the year stood 5.1 per cent higher year-on-year at 5.94 million tonnes. That was faster than consumption growth, resulting in soaring inventories. As of March 5, social inventories of primary aluminium stood at 1.49 million tonnes, up 151.35 per cent from the end of 2019.
The Coronavirus outbreak is yet to cause primary aluminium production cuts. But meanwhile, some high-cost producers are planning to start smelter maintenance work amidst the lower aluminium price trend and higher operating costs.
For March, SMM expects 36.75 million tonnes of primary aluminium capacity to be in operation, while monthly production to increase to 3.08 million tonnes, up 3.3 per cent from the same period last year.
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