In August 2024, primary aluminium production in Europe continued to grow, reaching a new high. Month-on-month, the output increased by 2,000 tonnes or 0.34 per cent, while year-on-year surged by 29,000 tonnes or 5.1 per cent, supported equally by Russia & Eastern Europe and Western & Central Europe.
According to the data revealed by the International Aluminium Institute, primary aluminium production across Europe amounted to 597,000 tonnes during August 2024, compared to 595,000 tonnes in July 2024 and 568,000 tonnes in August 2023.
Of the total European output in August, Russia & Eastern Europe contributed 354,000 tonnes, accounting for 59.3 per cent, and Western & Central Europe contributed 243,000 tonnes, accounting for 40.7 per cent.
Production trend in Russia & Eastern Europe
On a month-on-month basis, primary aluminium production in Russia & Eastern Europe witnessed a marginal growth of 1,000 tonnes but saw a significant annual hike of 4.73 per cent from 338,000 tonnes, reaching 354,000 tonnes in August.
From January to August, the output of primary aluminium in Russia & Eastern Europe totalled 2.748 million tonnes, up by 3 per cent from 2.668 million tonnes during the corresponding period of the previous year.
The staggering growth in production during July and August could be attributed to increased profitability on the global price rally on the London Metal Exchange. At the end of May, the LME aluminium price skyrocketed to US$2,695 per tonne, which dwindled in the subsequent month but again exceeded the US$2,500 per tonne level at the end of August. The increase in prices also stimulated capacity ramp-ups in Russia, resulting in heightened monthly output.
Rusal, a leading primary aluminium producer from Russia and the world’s largest manufacturer outside China, expects this heightened production to be offset by demand, which has started reviving due to the Chinese economy stimulus package. Rusal’s primary export destination is now China since the Western countries have sanctioned Russia due to the Ukraine-Russia conflict, and the London Metal Exchange has banned the country from its warehouses.
Rusal expects higher output will be largely offset by the growing demand from the end-user sector, at 2.5-2.7 per cent in 2024 and 3.5 per cent in 2025.
Production insights for Western & Central Europe
In August 2024, primary aluminium production in Western & Central Europe stood at 243,000 tonnes, slightly up from 242,000 tonnes in July and significantly higher by 5.65 per cent compared to 230,000 tonnes.
From January to August, Western & Central Europe’s production totalled 1.859 million tonnes, marking a surge of 2.99 per cent from 1.805 million tonnes during the same period of the previous year.
The average daily production stood restrained M-o-M at 7,800 tonnes in August but grew by 400 tonnes from a year ago.
