The International Aluminium Institute reported a significant decrease in global production of primary aluminium for November 2023. The latest data indicates a monthly drop of 3.7% in global aluminium output, totaling 5.89 million tons. However, compared to the same period last year, there was a 2.7% increase from 5.74 million tons.
Yearly Production Trends
The first eleven months of the year saw a cumulative rise in aluminium production, with a 2.2% year-on-year increase, reaching 64.52 million tons. Despite this annual growth, there was a noticeable decline in daily average production, which fell to 196,433 tons in November from 197,419 tons in October.
Regional Analysis
- China: As the leading producer, accounting for over 59% of the global output, China experienced a reduction in production to 3.5 million tons in November from 3.65 million tons in October. The daily average also dropped slightly. This decline was attributed to production cuts in Yunnan province due to lower hydropower generation.
- Asia Excluding China: Production in this region fell to 389,000 tons in November from 401,000 tons in October.
- Africa: There was a decrease in output to 132,000 tons in November from 139,000 tons in October.
- Gulf Cooperation Council: This region saw a reduction in production to 506,000 tons in November from 518,000 tons in October.
- Western and Central Europe: November production fell to 224,000 tons from 230,000 tons in October.
- North America: Output dropped to 329,000 tons in November, down by 7,000 tons.
- South America: Production decreased by 4,000 tons to 123,000 tons in November.
Market Reaction
Following these production updates, aluminium prices reacted accordingly. On the Multi Commodity Exchange of India, the most-active December contract of aluminium was down by 1.1% at 200.50 rupees per kg. Conversely, the three-month futures contract on the London Metal Exchange saw a 0.6% increase, priced at $2,227.50 per ton. 
