China’s Aluminium Output Rises 2.6% Amid Improved Smelter Profitability

China's aluminium production increased by 2.6% year-on-year in January and February, reaching 7.32 million metric tons, according to data released by the National Bureau of Statistics. The rise in output was driven by improved profitability at smelters, largely due to easing alumina supply constraints and falling raw material costs.

Total production of ten nonferrous metals, including aluminium, copper, lead, zinc, and nickel, grew by 1.4% over the same period, reaching 12.94 million metric tons. Other nonferrous metals in this category include tin, antimony, mercury, magnesium, and titanium. China releases combined production data for the first two months of the year to account for fluctuations caused by the Lunar New Year holiday.

The state-backed research company Antaike attributed the improved aluminium smelter profitability to declining alumina prices. Alumina, the key input for aluminium production, saw a significant price drop in early 2024. On the Shanghai Futures Exchange, the most active alumina contract fell by 28% over the first two months of the year, closing at 3,363 yuan ($464.81) per metric ton on February 28, down from 4,700 yuan per ton on January 2.

With lower input costs and stabilized production, China’s aluminium industry remains on track for steady output growth in 2024, supporting the country’s position as the world’s largest aluminium producer.