October 2024: Transition phase to off-season results in decreased billet production in China
China's primary aluminium billet output in October 2024 retreated from its previous month's high as many billet manufacturers reduced their production pace due to several unfavourable factors like high selling prices, lower processing fees, and sluggish downstream demand. Usually, October is a season when the market takes a turn aligned with the year-end goals.
According to the Shanghai Metals Market survey, China's daily average production of primary aluminium billet in October lost what it gained last month despite having one more operating day. The average daily output dropped 2,000 tonnes M-o-M to 49,000 tonnes per day, resulting in a monthly output of 1.507 million tonnes in October, as against 1.528 million tonnes in September. That recorded a month-on-month decline of 1.37 per cent but stood 13.6 per cent or 177,000 tonnes higher than a year ago.
The total number of billet manufacturers under the monthly review was 169. Their total capacity in October was 31.205 million tonnes, the same as the previous month, with an operating rate of 58 per cent, down by 0.8 per cent M-o-M.
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