According to data from China’s National Bureau of Statistics (NBS), the country’s production of primary aluminum in June rose to the highest level in nearly a decade. China, the world’s biggest aluminum producer, churned out 3.67 million metric tons of primary aluminum, up 6.2% year-on-year.
This marked the highest single month of production in Reuters’ records that date back to November 2014. The surge in output was driven by producers ramping up production amid higher profits.
Last month, China’s northern region of Inner Mongolia added some new capacity, while the southwestern province of Yunnan resumed most of its production thanks to sufficient hydropower supply in the summer rainy season, according to a report by information provider Shanghai Metals Market.
This brought total aluminum production in the first half of 2024 to 21.55 million tonnes, a rise of 6.9% from the same period last year, the NBS data showed.
The strong performance in June and the first half of the year reflects the Chinese aluminum industry’s resilience and the producers’ ability to capitalize on favorable market conditions. Higher profits have incentivized producers to increase output, contributing to the record-high production levels.
The surge in China’s aluminum output comes as the global aluminum market continues to grapple with supply chain disruptions and geopolitical tensions that have impacted production in other major producing regions. China’s ability to ramp up production has helped offset some of these global supply challenges.