China’s primary aluminum output grows in May, driven by increased profitability

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.