Global Alumina Production Sees Significant Drop in February
In a recent report by the International Aluminium Institute, global alumina production witnessed a notable decline of 6.9% in February, dropping to 11.08 million tonnes from 11.90 million tonnes in January. Despite this monthly dip, the production still marks a 5.9% increase from the same period last year, where it stood at 10.46 million tonnes.
The average daily global alumina output also saw a slight decrease to 382,069 tonnes in February, down from January's 383,871 tonnes. This subtle shift underscores the fluctuating dynamics within the global alumina market.
China, a dominant player in the alumina industry, accounted for nearly 57% of the global production last month, although its output decreased by 6.4% to 6.28 million tonnes from 6.71 million tonnes in January. This decline in China's production is reflective of broader market trends affecting the sector.
Regionally, the Oceania area experienced a significant reduction in alumina output, dropping to 1.44 million tonnes in February from 1.65 million tonnes in January. Similarly, production declines were observed in Asia (excluding China) and Africa, as well as in Europe and South America, indicating a widespread contraction across the globe.
The report also highlighted a sharp 8.5% decrease in global primary aluminium production in February, amounting to 5.54 million tonnes, down from 6.06 million tonnes in January, pointing to a broader slowdown in the aluminium sector.
Market reactions were immediate, with the most active April aluminium contract on the Multi Commodity Exchange of India falling 1.1% to 206.95 rupees a kg. Additionally, the three-month futures contract on the London Metal Exchange experienced a 0.6% decrease, trading at $2,311 per tonne.
