Production of domestic aluminum billets decreased in April

The number of aluminum billet producers in SMM’s monthly survey sample currently totals 174, with a total production capacity of 30.995 million mt. The total national aluminum billets production in April 2024 (30 days) was 1.472 million mt, down 36,000 mt or 2.4% MoM; monthly output increased by 119,000 mt, up 8.8% YoY. The operating rate of aluminium billet plants dipped by 3.6% MoM and 10.8% YoY to 57% in April.

In April, both the domestic output and operating rate of aluminum billets decreased MoM. There was one less working day in April than in March. In addition, constrained by oversupply and low processing fees, some aluminum billets manufacturers stopped or reduced production in late April to cope with the continued losses as well as pressure brought by factors such as capital and inventory, especially those in Guangxi, Guizhou and Inner Mongolia. In April, some aluminum billets companies in Ningxia increased their operating rate from 50% to about 75% to reduce overall costs, leading to a significant MoM increase in local output in April.

Overall, as the disturbance on the aluminum billets supply in Guangxi and other regions persisted, SMM expects that the output in May will extend declines.