March 2024: China’s primary aluminium production grows 7.4% Y-o-Y endorsed by price rally and higher profit margins

According to data revealed by the National Bureau of Statistics (NBS), China's primary aluminium production rose 7.4 per cent Y-o-Y in March 2024 to reach 3.59 million tonnes. Output increased over the year due to boosted industry profits driven by higher metal prices because of revived demand.

Escalated metal prices encouraged increased operations in some of China's major aluminium-producing provinces. Besides heavy demand, aluminium prices were also supported by concerns over supply uncertainty, exacerbated by sluggish production in the southwestern province of Yunnan, a key producing area with 6.1 million tonnes of annual production capacity.

China's primary aluminium production rose in March 2024 for the first time in six months, driven by increased demand for end-user products.

In the first three months of 2024, China's primary aluminium production totalled 10.69 million tonnes, up by 6.8 per cent Y-o-Y.

The most-traded aluminium contract on the Shanghai Futures Exchange (SHFE) increased by 3.4 per cent in March, while the benchmark price on the London Metal Exchange expanded by 4.1 per cent.

According to Antaike, the aluminium price rally last month boosted average profit margins for the producers to US$337.79 per tonne (RMB 2,444 per tonne), up by 24 per cent M-o-M and 86 per cent Y-o-Y, stimulating production.