
Aluminium prices dipped by 0.79 per cent, settling at USD 257.2, as the market continued to grapple with volatility stemming from inconsistent supply and demand. In August 2025, China's domestic aluminium production saw a year-on-year increase of 1.22 per cent and a month-on-month rise of 0.33 per cent.

On the trade side, imports showed a robust growth, climbing 12.9 per cent year-on-year in August to reach 320,000 tonnes. Cumulatively, imports for the first eight months of 2025 hit 2.65 million tonnes, reflecting a 2.7 per cent increase compared to the same timeframe last year.
Amid the rising output, there have been evidences for regional demand drops, such as in Japan, where aluminium stocks increased by 6.3 per cent M-o-M in August, resulting in lower offerings of shipment premiums between USD 98 and USD 103 per tonne.
On the other hand, LME aluminium inventories took a significant hit, dropping nearly 100,000 tonnes in the first part of September, leaving stocks at 375,000 tonnes and showing just how tight availability is becoming. According to WBMS, the global aluminium market faced a deficit of 119,900 tonnes in July, pushing the total shortfall for January to July 2025 to 985,300 tonnes.
To know more about the global primary aluminium industry 2025 outlook, read “Global Aluminium Industry Outlook 2025”
In August, China saw a 4 per cent year-on-year increase in its output of 10 nonferrous metals, which include copper, aluminium, lead, zinc and nickel, totalling 6.62 million tonnes. Over the first eight months of 2025, the overall production hit 52.05 million tonnes, reflecting a 5.4 per cent rise compared to the previous year, including tin, antimony, mercury, magnesium and titanium.
Also read: Overview of China's aluminium production in June 2025 and forecast for July
Overall, the increase in production amid sluggish demand led to aluminium price fall. A slowdown in manufacturing activity in China and the US, combined with a rise in domestic supply, put pressure on prices. By August, the average price had decreased to RMB 2,121 (USD 299.03) per tonne, a figure that still supports profitable production, particularly in areas that enjoy low-cost energy.
In the meantime, aluminium producers in the southwestern part of Yunnan province have been keeping their output strong, due to plentiful hydropower resources available in the area.
Also read: China's aluminium imports surge in July'25
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