A jump in aluminium supply in Inner Mongolia helped push the People’s Republic of China’s aluminium production level to a new record in April.
China’s National Bureau of Statistics reported earlier this week that the Middle Kingdom’s total aluminium output for the month was 3.35 million metric tons. Last month’s output bests March’s total of 3.276 million metric tons by 2.3 percent and high above last April’s total by 12.4 percent.
Analysts say that the lapsing energy rationing in Inner Mongolia prompted smelters in Baotou to restart capacity. Additionally, aluminium prices above US$3,100 per metric ton in the month spurred on increased production during the month of April as well.
For 2021’s first four months China produced 13.02 million metric tons of aluminium, beating last year’s opening four months by 9.6 percent. Production averages increased month on month, totaling 111,667 metric tons per April’s 30 days, surpassing the 105,700 metric tons per day averaged in March’s 31 days.
“Record high daily and monthly production are mainly due to high prices and ramp-ups of new capacity in China,” opined CRU’s Wan Ling to Reuters on Sunday.
China is expected to continue higher outputs in May, as the Zhongrui Aluminium smelter’s first phase came online on 1 May. The aluminium smelter project, which was bought from Hangzhou Jinjiang last month, envisions an aluminium smelter with a nameplate capacity of 100 thousand metric tons per annum. The project was started three years ago, but construction of the plant was put on hiatus for a time.