Fears of power rationing for smelters in some regions such as Guangxi due to power shortages have failed to materialise.

However, in terms of annualized production, July’s production fell compared to June, albeit at a low rate, down from 19.03Mt to 18.71Mt.

Jan-July total primary output, according to the CNIA, was 10.28Mt, up 5.48% y-o-y.

Unless there is major disruption caused by power cuts or a power tariff increase, China’s primary production rate will continue to rise in the rest of the year as greenfield and brownfield projects are ramped up.

With elimination of potlines using older technology taken into account, production in China is forecast to reach 18.6Mt in 2011.