Global aluminium production stagnates due to decline in Chinese producion
by David Fleschen
According to data from the International Aluminium Institute, global aluminium production rose slightly in absolute terms in July compared to the previous month, but adjusted for calendar days it fell slightly by 0.4%. The main factor was the decline in production in China, where daily production fell by 0.5% on a monthly average. The figures are essentially the same as those reported by the Chinese statistics authority last week. Global aluminium production thus remains below the record levels of last August.
However, no price pressure seems to be building up yet, as the demand picture remains unclear. At the beginning of the week, for example, aluminium stocks registered on the LME rose surprisingly sharply, after having slipped to their lowest level since mid-February at the end of last week: According to media reports, a US-based bank had taken larger quantities of Russian-origin aluminium out of storage. The picture for China's demand is also mixed: while the general economic data give cause for concern, a report by the research group SMM states that stocks of aluminium ingots are currently rather low and therefore a build-up is to be expected in the short term. In addition, China reported record aluminium imports from Russia for July, although the import volumes are small compared to its own production. Aluminium prices are likely to remain volatile in the short term.
Source: Commerzbank Research, Photo: Fotolia