China records strong operating rates in aluminium smelters in Mar'23

Primary aluminium smelters in key production hubs of China, such as Shandong, Xinjiang, and Inner Mongolia, maintained strong operating rates in March 2023, as reported by Alcircle.

These three provinces collectively accounted for an amalgamated installed aluminium capacity of 20.65 million tonnes (mnt), which is nearly half of the country's total capacity.

As of April 2023, China witnessed a resumption of 930,000 tonnes (t) of aluminium capacity and the commissioning of 212,000 t of new capacity. These combined to reach a total aluminium capacity of 1.14 mnt, which nearly offsets the effects of the 1.2 mnt of capacity cut.

China's aluminium production in March 2023 demonstrated a m-o-m improvement of 10.35%, rising from 3.09 mnt to 3.41 mnt. The total output for the first quarter grew by 4.8% y-o-y to reach 9.92 mnt.

Looking ahead, China's installed aluminium capacity is expected to continue increasing as smelters in Yunnan resume production after the dry season and resolve power supply shortages.

According to sources, an estimated 2.63 mnt of aluminium capacity are expected to resume later this year, with an additional 1.57 mnt of new capacity coming into operation. This anticipated increase in capacity may lead to an excess supply situation in the second quarter or second half of the year, exerting downward pressure on aluminium prices.

Note: This article has been published in accordance with an article exchange agreement between Alcircle and SteelMint.