A Decrease Observed Worldwide
Global alumina production witnessed a 3.2% decline in September, dropping to 12 million tons, as per recent findings from the International Aluminium Institute. Despite this reduction, there was a slight uptick in average daily production, which registered at 400,133 tons, a marginal increase from August’s 399,967 tons.
Significant Output Drop in China
China, a major contributor to global alumina output, reported a 4.1% decrease in its production. The country produced 7 million tons in September, making up over 58% of the world’s total alumina production. This drop is significant, considering China’s influential role in the international metals market.
Stable and Decreasing Figures Across Continents
In other regions, the production landscape remained relatively stable or saw slight reductions. The Oceania region maintained its output at 1.6 million tons. However, there were mild decreases in Asia (excluding China) and Africa, with production settling at 1.15 million tons, slightly down from 1.17 million tons in the preceding month.
Europe’s alumina output experienced a minimal drop to 550,000 tons, and South America’s production levels held steady at 1.03 million tons.
Primary Aluminium Production Also Impacted
Not just alumina, but global primary aluminium production also underwent a decline, falling from 6.05 million tons in August to 5.87 million tons in September. This reduction aligns with the broader trend observed in the alumina market.
Yearly Production Analysis
Examining the broader timeframe from January to September, there was a 0.5% decline in total alumina production compared to the previous year, decreasing from 106.6 million tons to 106.01 million tons.
Following these production disclosures, trading trends showed a slight increase. On the Multi Commodity Exchange of India, the most active November aluminium contract experienced a 0.1% rise. Similarly, the three-month futures contract on the London Metal Exchange saw a 0.1% uptick.
The market’s mild positive response, amidst production decreases, suggests an intricate balance between supply-demand dynamics. Industry stakeholders are closely monitoring these trends to navigate the volatile metals market effectively.