Primary aluminium production in China from Jan-May plunges 1.3% YoY; downtrend likely to continue till June

According to Shanghai Metals Market data, the production of primary aluminium during the first five months of 2019 in China stood 1.3 per cent down from a year ago. The total production thus came in at 14.56 million tonnes. In May separately, the production was at 3.04 million tonnes, down 1 per cent year on year. Lower operation capacity despite a build-up in May was one of the major factors responsible for the decline in primary aluminium production, showed SMM data on Monday, June 10.

By the end of May, the domestic primary aluminium capacity in operation was at an annualised 35.81 million tonnes, up 643,000 tonnes from the end of April but down 377,000 tonnes from a year ago. New capacity and recovery at smelters in Gansu, Yunnan, Guangxi, and Qinghai lifted the operating capacity from April.

In June, an additional 210,000 tonnes in operating capacity is expected to resume, as smelters in Suyuan, Zhaotong, Meixin, and Zhongrun are expected to expand or restart their capacities.

According to SMM’s anticipation, production of primary aluminium is estimated to stand at 3.01 million tonnes in June, down 0.98 per cent from May and 0.4 per cent from the corresponding period last year. This will bring the total primary aluminium production in the first half of 2019 to 17.57 million tonnes, down 1.2 per cent year on year.