China’s May Aluminium Production Hits Decade High Amid Solar and EV Boom

China's primary aluminium production surged by 7.2% in May, reaching its highest monthly level in nearly a decade, driven by strong growth prospects in the solar and electric vehicle sectors. The world's largest aluminium producer generated 3.65 million metric tons of primary aluminium in May, according to data from the National Bureau of Statistics. This marks the highest output for a single month since at least November 2014, based on Reuters data.

Market analysts attribute the production spike to continued robust demand, which has spurred speculative buying of aluminium futures. In May, aluminium futures rose to approximately two-year highs. The benchmark aluminium contract on the London Metal Exchange gained for the fourth consecutive month, peaking at $2,700 per ton in late May—a level not seen since June 2022. Similarly, the most-traded aluminium contract on the Shanghai Futures Exchange climbed to more than two-year highs, reaching about 22,000 yuan ($3,032.43) per ton.

For the first five months of the year, China produced 17.89 million tonnes of aluminium, a 7.1% increase from the same period last year. Production of ten nonferrous metals—including copper, aluminium, lead, zinc, and nickel—rose by 7.4% year-on-year to 6.61 million tonnes in May. Year-to-date output of these metals increased by 6.9% to 32.42 million tonnes. Other non-ferrous metals in this category include tin, antimony, mercury, magnesium, and titanium.