China’s aluminium production in Sept’24 reflects 1.2% annual growth driven by higher profit margins

According to the National Bureau of Statistics, China's aluminium production in September grew year-on-year, driven by steady demand and profitable margins for producers. As per the data revealed, China, the world's largest producer of aluminium, churned out 3.65 million tonnes of light metal, up by 1.2 per cent year-on-year.

The National Bureau of Statistics also showed the average daily production in September stood at 121,667 tonnes, higher than the previous month's 120,322 tonnes. In contrast, the monthly output in September edged a 2.14 per cent fall from 3.73 million tonnes in August.

Steady growth in demand buoyed by the transportation and packaging industries primarily resulted in growing aluminium production on an annual basis. Escalation in aluminium consumption in the solar and other renewable power industries offset weaker demand in the real estate sector.

Increased profit margins due to higher aluminium prices also propelled the production growth of Chinese aluminium. According to the Shanghai Metals Markets, China's primary aluminium price during September 2024 climbed up by 4.73 per cent through the month, standing at RMB 20,380 per tonne on September 30. Owing to the price hike, the industry's profit averaged RMB 2,379 per tonne ($334.04 per tonne) in September, up 12.2 per cent from the prior month, estimated state-backed research house Antaike.

The price gains were driven by China's economic stimulus package that boosted the country's overall financial state and augmented the buyers' purchasing capacity.

In addition, operation resumption in some of the provinces like Sichuan and Guizhou after technical upgrades bolstered aluminium production in September. Meanwhile, stable hydropower supply in the southwestern Yunnan province due to improved summer rainfall also enabled producers to sustain strong operation rates.

For the first time in nine months, China's aluminium production reached 32.56 million tonnes, up 4.6 per cent from a year earlier.