LONDON, July 1 (Reuters) – China’s production of primary aluminium is closing in on last year’s record highs as previously idled capacity ramps up in Yunnan province. The country increased production by 5% year-on-year to 3.65 million metric tons in May, according to the latest estimate from the International Aluminium Institute.
National output is now running close to an annualised 43.0 million tons, within touching distance of the record highs seen in September and October last year.
The strength of primary production growth has served to further tighten up the market for alumina, the intermediate product refined from bauxite. Chinese spot prices are currently trading close to their highest levels since late 2021, in turn providing cost support for the metal price.
RAIN RESTARTS PLAY
Yunnan has seen much improved rainfall this year, alleviating power shortages in the hydro-rich province. The local authorities have lifted operating restrictions on primary aluminium producers, facilitating the restart of around 1.15 million tons of capacity that was ordered off-line last November.
For the rest of this article: https://www.reuters.com/markets/commodities/rising-chinese-aluminium-output-pressures-alumina-supply-2024-07-01/#:~:text=Chinese%20alumina%20producers%20increased%20exports,under%20500%2C000%20tons%20in%202024.