China, a dominant force in the global aluminium market, has once again demonstrated its leadership. The country, which holds the title of the world's leading aluminium producer, churned out a staggering 3.67 million tonnes of primary aluminium in June. This marked a 6.2 per cent year-on-year surge and set a new record for the highest monthly production since November 2014, according to Reuters data.
According to a report by Shanghai Metals Market, last month, China's northern region of Inner Mongolia expanded its capacity, and the southwestern province of Yunnan resumed most of its production due to an ample hydropower supply during the summer rainy season.
H1 2024
This led to a total production of 21.55 million tonnes in the first half of the year, a 6.9 per cent increase from the same period last year, as reported by the NBS. Higher profit margins in the industry drove the growth, thanks to a surge in aluminium prices fuelled by investor optimism about light metal demand and increased investment in the base metals sector.
In late May, the most-traded aluminium contract SAFcv1 on the Shanghai Futures Exchange (SHFE) reached a two-year high of over 22,000 yuan ($3,030.39) per tonne, marking a 15 per cent increase since the beginning of the year.
