China’s Aluminium Production Surge: Will Demand Keep Pace?

In August, global aluminium production hit a peak, reaching an annual rate of 71.2 million metric tons, marking the second consecutive month above 70 million.

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The International Aluminium Institute (IAI) adjusted its primary production figures, indicating an increase in output both in China and globally.

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Chinese aluminium production had initially dipped due to power reductions in hydro-powered provinces. Still, it has rebounded with improved electricity supply during the rainy season.

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The annualized run-rate in China hit a new high of 42.4 million tons in August, nearing the capacity limit set on the sector.

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Notably, exports of aluminium products have reduced, suggesting strong domestic off-take. However, with production continuing to rise, China’s appetite for aluminium will be tested.

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