China Primary Aluminium Billet Output Continued To Grow In April After Hitting A Nearly Two-Year High In March

SHANGHAI, May 15 (SMM) - SMM data showed that China’s primary aluminium billet output was 1.35 million mt in April, up 3.6% MoM and 9.7% YoY. After hitting a nearly two-year high in March, the output continued to increase in April. Some aluminium billet plants in Inner Mongolia ramped up production in April. Aluminium billet plants in Guizhou and Guangxi also beefed up production as production resumptions by local aluminium smelters made more molten aluminium available, with output in the two provinces up 11.1% and 3.7% respectively from March.  Production in other regions also rose, driven by growing orders and eased shortages of molten aluminium. The main reason for rising aluminium billet production in March and April is that smelters stepped up molten aluminium supply to local billet plants. In the past two years, booming new energy vehicle and photovoltaic industries have boosted demand for related extrusion. Thus, orders for customised billets such as 6005 and 6061, also increased significantly, and their profit margin are higher than traditional 6063 billets. After being hit the pandemic last year, optimistic expectations encouraged billet plants to ramp up production.