According to CNIA, primary output hit a new high of 1.56Mt in June, up 1.5% mo- m and rising 9.8% y-o-y.
That brings the Jan-June total production to 8.69Mmt, up 4.4% y-o-y. June’s production points to an annualised 19.03Mt, a historical high.
It seems the power shortage in some places since April this year has led to few supply disruptions to date.
With power restraints now easing due to increased supply from hydropower stations in the rainy season, there is little possibility ahead that production will be disrupted by restrictions in power usage.
Instead, production was further boosted by improved utilisation rate in restarted potlines (mainly in Sichuan) and newly commissioned smelters (in Xinjiang).
Although the government recently instructed that a total of 619 ktpa of outdated aluminium capacity shall be eliminated this year, production is expected to rise further for the rest of the year, due to new projects being brought on line in northwest China. This will boost capacity by 2Mt/y.
Source China Metals