Xinjiang's aluminium smelters maintained robust production and stable distribution amid challenges

In a noteworthy development, Xinjiang's aluminium production capacity has surged to 6.18 million tonnes, making up 15 per cent of China's total output and ranking third nationally.

Thanks to abundant coal and low-cost electricity, the region boasts an impressive operational rate of over 99 per cent. With cumulative aluminium production hitting 3.5675 million tonnes by July 2023, Xinjiang emerges as a major aluminium hub.

Xinjiang's dominance extends to aluminium ingot production, where it commands a substantial 46.17 per cent share of molten aluminium and an output nearing 1.9206 million tonnes. The logistical advantage of being distanced from key consumer areas contributes to the ease of aluminium ingot sales.

Despite recent supply chain disruptions in other regions due to flooding and transport diversion, Xinjiang's aluminium distribution remains largely unaffected. The data indicates a consistent decline in domestic aluminium ingot stockpile, hitting a five-year low of 517,000 tonnes by August 7th, down 170,000 tonnes from the same period in 2022.

August saw mixed trends in domestic aluminium ingot deliveries, with Foshan, Tianjin, and Chongqing experiencing an increase, while Gongyi, Shanghai, and Wuxi observed a decrease. Predictions point toward a modest rise in domestic aluminium ingot inventory, underpinned by subsequent warehouse entries.

Xinjiang's aluminium industry stands strong, maintaining production and distribution momentum even amid supply challenges across the nation.

If you want to gain a comprehensive market insight into the aluminium value chain, explore AL Circle's Global Aluminium Industry Outlook 2023 report.

Received under the content exchange agreement with SMM (metal.com)