SHANGHAI, May 9 (SMM) – Aluminum output in China will refresh record high in May since growing profit brought by falling costs will incentivize production, SMM expects.
China’s aluminum output rose 21.5% year-on-year to 3.03 million tonnes in April and rose 21.9% year-on-year to 12.02 million tonnes during January-April, SMM statistics showed. Annualized aluminum capacity in operation increased 6.53 million tonnes from a year ago to 36.88 million tonnes in April. The amount of aluminum capacity in operation was low in April 2016, which allowed output to grow on a yearly basis in April 2017. No large-scale production cuts were reported in April this year.
China Alumina Output to Grow in May, SMM Expects
Some smelters, including Gansu Dongxing Aluminum and Sichuan Aostar Aluminum, plan to resume production in May. So, there is still room to grow for aluminum capacity in operation in May. No large-scale production cuts have been reported in Xinjiang, Shandong and Inner Mongolia, except 20,000-tpy cut at Xinjiang Jiarun Resources in late April.
SMM expects aluminum production nationwide to grow 20.7% year-on-year to 3.15 million tonnes in May.
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