China’s Aluminium Output Rises in November Despite Profit Pressure
China's aluminium production increased by 3.6% year-on-year in November, reaching 3.71 million metric tons, according to data from the National Bureau of Statistics. The rise in output, attributed to newly added capacity in Xinjiang and resumed operations in southwestern China, occurred despite declining industry profits.
Daily aluminium production in November averaged 123,667 tons, marking a 3% rise from October’s average of 120,000 tons, based on Reuters' calculations. Aluminium producers also pushed shipments ahead of changes to export tax rebate policies, which supported higher production levels.
Rising costs have weighed heavily on industry profitability. The average profit per ton plunged by 60.8% from the previous month to 1,003 yuan ($137), according to state-backed research firm Antaike. Higher alumina prices, driven by a shortage of bauxite from Guinea—China’s largest supplier—have contributed to these cost pressures. Alumina, refined from bauxite, is the primary input for aluminium production. The most-traded alumina contract on the Shanghai Futures Exchange rose 8% to 5,539 yuan ($761) per ton by the end of November.
In the first eleven months of 2023, China's aluminium output reached 40.22 million metric tons, up 4.6% from the same period in 2022. Production of ten nonferrous metals—including aluminium, copper, lead, zinc, and nickel—rose 1.5% year-on-year to 6.71 million metric tons in November. Year-to-date output for these metals climbed 4.4% to 72.29 million metric tons.
While some smelters curtailed operations for maintenance during winter, particularly as hydroelectric power supplies declined, overall production growth remained resilient due to new capacity and efforts to navigate shifting market conditions.
