According to the Shanghai Metals Market, China’s aluminium production in January (31 days) 2022 stood at 3.204 million tonnes, 3.6 per cent more month-on-month. The daily average output came in at 103,000 tonnes, up 1,000 tonnes per day from the previous month.
In January, the proportion of aluminium and aluminium liquid was about 64.2 per cent, 1.3 per cent less than in December 2021 but 0.8 per cent than in January 2021.
The operating capacity of domestic aluminium continued to rise in January 2022, primarily contributed by Yunnan, the east Inner Mongolia, Guizhou, Shanxi and other places. At the end of January, the operating capacity stood at 38.38 million tonnes, an increase of 680,000 tonnes from December. The installed capacity was 43.97 million tonnes.
In February (28 days), aluminium production is estimated at 2.91 million tonnes, with daily average output at 104,000 tonnes per day, considering the 300,000 tonnes production resumption of domestic aluminium suppliers in Yunnan, Inner Mongolia, and Qinghai., and the 420,000 tonnes of production reduction due to the epidemic in Guangxi Baikuang area.
On the other hand, demand from the downstream sector is expected to drop sharply in February due to the influence of the Spring Festival holiday and the effect caused by the environmental protection control in Henan, Shandong, and Hebei. It is expected that domestic aluminium ingot inventory will continue to accumulate in February, and it may increase to 1.1 million tonnes at the end of February.
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