SINGAPORE: China’s September aluminium output rose from a year earlier, official data showed on Friday, thanks to firm demand and profitable margins for producers of the light metal.
The world’s biggest aluminium producer churned out 3.65 million metric tons of primary aluminium last month, 1.2% higher year-on-year, data from the National Bureau of Statistics showed on Friday.
Daily output in September averaged 121,667 tons, higher than the average of 120,322 tons in August, based on Reuters’calculation.
Demand for the metal used in the transportation, construction and packaging sectors has remained healthy this year, as fast-growing consumption from solar and other renewable power industries offsets weaker property market demand.
State-backed research house Antaike estimated the industry’s profit averaged 2,379 yuan ($334.04) per ton in September, up 12.2% from the prior month, thanks to higher aluminium prices.
The price gains were driven by an outsized U.S. interest rate cut and aggressive stimulus packages announced by China last month that boosted the demand outlook.
Meanwhile, hydropower supply in the southwestern Yunnan province remained sufficient amid improved rainfall during the summer season, which enabled producers there to sustain strong operation rates.
For the first nine months of the year, China produced 32.56 million tons of aluminium, up 4.6% from a year earlier, the data showed.
Production of 10 nonferrous metals, including copper, aluminium, lead, zinc and nickel, rose 2.2% to 6.64 million tons in September from a year earlier. Year-to-date output was up 5.6% at 58.74 million tons. The other non-ferrous metals are tin, antimony, mercury, magnesium and titanium.
Source: Brecorder
