Mysteel:China primary aluminum production up 2.3% in August

According to Mysteel, China's total aluminum installed capacity is 44.74 MTPA by the end of August, up 0.22% on month and 0.53% compared to the same period last year. The operating capacity is 42.79 MTPA by the end of August, up 1.25% on month and 5.02% on year.

Data source: Mysteel

Data source: Mysteel

The installed capacity increased slightly driven by the capacity relocation of Weiqiao from Shandong to Yunnan. The relocation will continue in the coming months and is expected to become the main contributor to the capacity increment in Yunnan.

Regarding the operating capacity, the increase is due to new commissioning and production resumption in Yunnan while partially offset by removal in Shandong. The continuous resumption in Yunnan since late June has been lasting for more than two months and is now reaching an end. The operating rate in the region has reached 94% by the end of August, which is 35% higher compared to early June when power control has not been lifted.

China's total primary aluminum production in August is 3.63 million tonnes, up 2.29% on month and 3.98% on year. The daily production is 117,000 tonnes in August, increased 2,600 tonnes compared with July.

Looking ahead to September, the resumption in Yunnan is about to end while the capacity relocation can bring further increment in the operating capacity. The supply changes in other regions is estimated to be limited.