September 17: China’s National Bureau of Statistics released data on Friday showed that in August, primary aluminum production increased by 3.1% year-on-year, hitting a record high, as the growth of hydropower generation in Yunnan Province helped the recovery of primary aluminum production growth.
According to the data from the National Bureau of Statistics, China produced 3.6 million tons of primary aluminum in August, representing a 3.4% increase compared to July. The daily average aluminum production in August was 116,129 tons.
Consulting agencies indicated that China’s aluminum industry added 390,000 tons of annual production capacity and 32,500 tons of monthly capacity recovery in August, primarily concentrated in Yunnan.
Due to water shortages caused by drought in September 2022, aluminum enterprises in Yunnan reduced production from September 2022 to June of this year. However, aluminum production in Yunnan increased in the third quarter of this year, offsetting the decline in production in Shandong Province, which is shutting down capacity as part of its carbon emission reduction goals.
As China implemented a series of economic measures to stimulate the real estate market, aluminum prices rebounded, leading to increased profitability in aluminum production. Last month, the Shanghai Futures Exchange aluminum benchmark contract rose by 3.8%, marking the largest monthly increase since November.
Data also showed that in the first eight months of this year, China produced 27.23 million tons of primary aluminum, a year-on-year increase of 2.9%.
With most of Yunnan’s aluminum production capacity restored, it is expected that September’s production will remain steady compared to August.
The statistics bureau data also revealed that in August, the production of 10 non-ferrous metals (copper, aluminum, lead, zinc, nickel, tin, antimony, mercury, magnesium, titanium) reached 6.29 million tons, a 6.1% year-on-year increase, setting a new monthly record. Production for the first eight months of this year increased by 6.8% year-on-year, reaching 48.56 million tons.