According to statistics released by the National Bureau of Statistics (NBS) of China, China’s primary aluminum production reached 3.83 million tons in May, hiking by 2% from the previous month and by 5% compared to the same month a year ago. This growth was driven by improved profitability, prompting primary aluminum smelters to increase or maintain production.
The average capacity utilization rate among Chinese smelters climbed to a record 96.99% in May, up by 0.26 percentage point month on month. Stable domestic demand and rising primary aluminum prices supported these higher profit margins.
Additionally, alumina prices in May rose significantly, up by 13.8% month on month, due to refinery output reduction and concerns on bauxite supply disruptions in Guinea.