Primary aluminium production in China stands 3.72% lower M-o-M at 3.11 million tonnes in September 2021 (30 days)

Primary aluminium production in China dropped by 3.72 per cent month-on-month to 3.11 million tonnes in September 2021 (30 days). On a year-on-year calculation, the output fell marginally by 0.10 per cent, found the Shanghai Metals Market. Of this, liquid aluminium accounted for 64.6 per cent in September, a decrease of 2 percentage points from August.

The daily average output in September 2021 was 103,700 tonnes, down by only 300 tonnes on the month from 104,000 tonnes and 100 tonnes on the year from 103,800 tonnes.

From January to September, China’s total primary aluminium production stood at 29.08 million tonnes, reflecting a year-on-year increase of 6.01 per cent from 27.43 million tonnes.

The fall in China’s primary aluminium output in September could be attributed to the reduced operating capacities in Inner Mongolia, Yunnan, and Guangxi due to power shortage and dual control of energy consumption in late September.

As of early October, China’s operating aluminium capacity stood at 37.45 million tonnes a year, leaving the operating rate at 85.6 per cent.

The operating aluminium capacity may continue to decline in October, as Qinghai and Ningxia are likely to lower the operating rates and no production recovery or new capacities to be put into production.

SMM expects primary aluminium output in October to come in at 3.19 million tonnes, with daily output to fall to around 102,900 tonnes.