In January, during the Chinese New Year holiday, the casting ingot output of aluminum plants across various regions increased [SMM Data].

Published: Jan 24, 2025 14:05

Save

[SMM Data: Aluminum Casting Ingot Production Increased Across Regions in January During the Chinese New Year Holiday] SMM, January 24: According to SMM statistics, China's aluminum production in January 2025 (31 days) was up 3.8% YoY but down 0.3% MoM. The domestic operating capacity of aluminum remained largely stable MoM, with only a few aluminum plants in Shanxi reporting production cuts of 20,000 mt/year, while no resumption of previously reduced capacity was reported. During the month, the proportion of casting ingot increased in multiple regions, while the proportion of liquid aluminum decreased by 2.9 percentage points MoM and 1.0 percentage point YoY. Based on SMM's liquid aluminum proportion data, China's aluminum casting ingot production in December increased by 7.3% YoY to approximately 1.13 million mt.

》Check SMM Spot Aluminum Prices, Data, and Market Analysis

》Subscribe to View Historical Price Trends of SMM Metal Spot

SMM January 24: According to SMM statistics, China's aluminum production in January 2025 (31 days) was up 3.8% YoY but down 0.3% MoM. The operating capacity of domestic aluminum smelters in January remained largely stable MoM, with only a few smelters in Shanxi reporting production cuts of 20,000 mt/year. Other previously reduced capacities have not resumed production. During the month, the proportion of casting ingots increased in multiple regions, while the proportion of liquid aluminum decreased by 2.9 percentage points MoM and 1.0 percentage point YoY. Based on SMM's data on the proportion of liquid aluminum, the casting ingot production in December increased by 7.3% YoY to approximately 1.13 million mt.

Capacity Changes: As of the end of January, SMM statistics show that the existing capacity of domestic aluminum smelters was approximately 45.71 million mt, while the operating capacity was around 43.51 million mt. The industry's operating rate decreased by 0.04 percentage points MoM but increased by 2.29 percentage points YoY to 95.2%. Currently, the operating capacity of domestic aluminum smelters remains largely stable, with only a few smelters in Shanxi cutting production by 20,000 mt/year due to technological transformation. The production capacities reduced in Sichuan and Chongqing in December due to losses have not yet resumed production. SMM will continue to monitor subsequent developments.

Production Forecast: Moving into February 2025, the operating capacity of domestic aluminum smelters is expected to remain stable, with no production resumption plans for previously reduced capacities. By the end of February, the annualized operating capacity of domestic aluminum smelters is expected to remain at 43.51 million mt/year. February coincides with the Chinese New Year holiday, leading to weaker downstream demand and production cuts at some billet and alloy plants. The proportion of liquid aluminum is expected to further decrease to around 68% in February. Continued attention is needed on capacity changes in various regions and the operating conditions of downstream sectors such as aluminum billets.

Data Source: SMM

Click on the SMM Industry Database for More Information

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

21 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

21 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

21 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

21 hours ago