Mysteel: China primary aluminum production up 5.37% in July

According to Mysteel, China's total aluminum installed capacity is 44.64 MTPA by the end of July, down 0.07% on month while up 0.71% compared to the same period last year. The operating capacity is 42.26 MTPA by the end of July, up 2.31% on month and 1.9% on year.

The slight decline in installed capacity is due to Weiqiao continuously relocating part of its capacity from Shandong to Yunnan. The installed capacity in Shandong will decrease further in August and we will see a growth in Yunnan's aluminum installed capacity.

Regarding the operating capacity, the increase is driven by new commissioning and production resumption in Yunnan and Guizhou but partially offset by production cuts in Sichuan and Shandong. Yunnan has fully lifted the power control after high precipitation in June and local smelters have been restarting since late June. The operating rate in Yunnan has reached 86% as of July 27 compared to below 60% before the resumption. The restart is estimated to complete in late August reaching an operating rate above 90%. Meanwhile, some aluminum smelters in Sichuan have lowered power consumption in a bid to guarantee the power supply for FISU World University Games opened on July 28. The impact of power control on aluminum production in Sichuan was limited and has not been expanded after the opening ceremony.

China's total primary aluminum production in July is 3.55 million tonnes, up 5.37% on month and 1.09% on year. The daily production is 114,400 tonnes in July, increased 2,200 tonnes compared with June.

Looking ahead to August, it is expected that the growth in operating capacity will slow down gradually with the resumption in Yunnan reaching an end and the commission of several new projects finishing in Guizhou.

Mysteel aluminum capacity and production data covers all aluminum smelters in China, and can be provided on weekly and monthly basis. For more details, please contact yangyiying@mysteel.com.