IAI: China's February aluminum output increased by more than 12%

Comprehensive media reported on March 23 that the latest data released by the International Aluminum Association (IAI) showed that China’s daily aluminum output in February increased by more than 12% over the same period of last year, as the industry expanded output.

The average daily aluminum output in China in February was 46,600 tons, which was higher than the revised figure of 41,400 tons in the same period of last year; the annual output rate after conversion was 17 million tons.

Reuters columnist AndyHome pointed out that China’s output is now almost back to the peak of the middle of last year; after peaking last year, China’s aluminum output was cooled due to the need to achieve energy efficiency goals before the end of December of the five-year plan. .

In December of last year, China's Henan Province will reduce its electricity supply to the aluminum-smelting industry by 20%, causing the Chinese province's aluminum output to suffer the highest operating losses.

However, the increase in power supply to refineries last month allowed the industry to restart idle capacity or start new capacity.

As China continues to expand, inevitably there will continue to be an increase in property outlays, said Standard Chartered analyst Daniel Smith.

Other statistics show that China’s net import of primary aluminum was almost halved from January, but China’s output increased.

Strong demand growth, coupled with soaring energy costs, is expected to give aluminum prices support, but the outlook for high inventory and oversupply may limit its gains.

On Monday, at 1634GMT, the three-month aluminum of the London Metal Exchange (LME) reported $2,565 per tonne, and closed at $2,560 on Friday.

The positive spread between three-month aluminum and spot prices increased to $29 per tonne. In January, tight market concerns led to a narrowing of the positive spread to $7.