China’s primary aluminium output hit multi-year highs in H1 but production in June fell for a second-straight month, owing to limitations on power consumption in the smelting hub of Yunnan, according to media reports.
The world’s largest metal producer increased H1 aluminium output to the highest since 2015, according to National Bureau of Statistics (NBS) records.
The country produced 19.64mn mt of aluminium in H1 (Jan-Jun) up 10.1pc from the prior-year period as aluminium prices rose well above break-even levels.
In June, China produced 3.29mn mt of copper as compared to 3.32mn mt in May. June production increased by 9.3pc as compared to June 2020.
Yunnan, which has about a tenth of China’s total aluminium capacity, ordered smelters to reduce energy consumption in late May after electricity generation was affected by a severe drought in the area.
The curbs on energy consumption remained for much of June and according to estimates, this curb could affect production till August post which production is likely to ramp up.
The output of 10 nonferrous metals including copper, aluminium, lead, zinc and nickel was 5.49mn mt in June at reduced levels from May, where output was 5.45mn mt.
May output of 5.45mn mt was the lowest since October last year but up 8pc as compared to prior-year period.