Focus China: Navigating price drop & demand challenges
The first half of 2024 witnessed significant developments in the Chinese aluminium industry, reflecting a blend of challenges, strategic shifts and growth. As a result, China's economic condition also witnessed significant changes during the H1 2024, owing to reasons like the demand production gap, which in turn resulted in higher aluminium prices.
Apart from this, other specific reasons, like the ease of electricity shortage in the Yunnan province, also resulted in significant changes in the economic conditions. Another reason that brought about changes in the Chinese aluminium industry can be attributed to Rio Tinto's declaration of force majeure on alumina shipments from its Queensland refineries due to gas shortages, which in turn affected their operations, leading to supply risks which temporarily drove aluminium prices higher.
As per the International Aluminium Institute (IAI), China's aluminium production during the first half of 2024 (H1 2024) came in at 21.259 million tonnes, reflecting a Y-o-Y surge of 1.042 million tonnes from 20.217 million tonnes recorded on H1 2023.
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