China's Primary Aluminum Production Capacity Continues To Decrease

- Nov 15, 2018-

China's primary aluminum production in October increased by 6.8% year-on-year to 2.72 million tons. According to foreign news on November 14th, the National Bureau of Statistics released data on Wednesday showed that China's primary aluminum output decreased for the third consecutive month in October. Before the winter government implemented the limited production, the sluggish aluminum price caused the smelter to cut output. China is the world's number one aluminum producer. In October, raw aluminum production was 2.72 million tons, down 2.5% from September's 2.79 million tons, but up 6.8% from the same period last year. CRU Aluminium analysts said that due to falling prices, an estimated 1.4 million tons of annual capacity will be closed. China's primary aluminum (electrolytic aluminum) output in October increased by 6.8% to 2.72 million tons; total output in January-October was 27.71 million tons, up 4.4% year-on-year. In October, the output of ten non-ferrous metals was 4.52 million tons, up 5.5% year-on-year; the total output in January-October was 44.79 million tons, up 4.4% year-on-year.

Mackenzie: The slowdown in China's aluminum capacity growth will bring risks. According to Dow Jones News on November 14, the consulting firm Wood Mackenzie said that the difficulty of project approval and weak demand led to a slowdown in China's aluminum production capacity, and urgent action is needed to avoid future supply shortages. McKenzie expects China to increase its production capacity by 5 million tons from 2017 to 2021, but it needs 10 million tons of new capacity worldwide. By 2027, alumina production capacity will double again. McKenzie said it would require a smelter to invest $30-40 billion and a refinery to invest $15-20 billion. The agency said that unless there is a quick investment now, there will be a supply shortage by 2025.