UPDATE 3-China March aluminium output growth slows on power issues in Yunnan, imports up

Kitco Media
By Reuters
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Reuters
(Adds imports data) BEIJING, April 18 (Reuters) - China's primary aluminium output in March rose from a year earlier but at a slower place than previous months, data released on Tuesday showed, as power supply disruptions in Yunnan province curtailed production. The world's top aluminium producer churned out 3.37 million tonnes of primary aluminium last month, up 3% from the same period a year ago, according to data from the National Bureau of Statistics. Imports of bauxite, the main source of aluminium ore, came in at 12.05 million tonnes last month. That was up 3% from 11.70 million tonnes in March last year, according to data from the General Administration of Customs released on Tuesday. China's southwestern province of Yunnan, which accounts for about 12% of China's total aluminium capacity and is the country's fourth-biggest producing province, forced electrolytic aluminium producers in late February to further reduce their power usage amid an ongoing electricity supply crunch. Yunnan relies largely on hydropower and has been experiencing issues with its power output since September after unusually low rainfall reduced water reserve levels. That month it asked aluminium smelters to cut production because of the power shortages. Production in other key regions including eastern Shandong province, southwestern Guizhou and Sichuan was largely unchanged last month, according to media reports.


The slower output growth has coincided with a seasonal demand uptick and post-pandemic economic growth in China. That has reduced stockpiles of aluminium, which is used in the construction, transportation and packaging sectors. Aluminium stocks in warehouses monitored by the Shanghai Futures Exchange (SHFE) declined to 274,347 tonnes on April 14, down 12% from 311,461 tonnes in March 17, an one-year high. The most-traded aluminium contract on the SHFE added 1.2% in March to close at 18,735 yuan ($2,725.01) a tonne. Better demand also buoyed China's aluminium imports in March. The country brought in 200,508 tonnes, including primary metal and unwrought, alloyed aluminium, up 1.8% from the same month the prior year, according to customs data. Total imports in the first quarter were 574,829 tonnes, up 7.8% from the corresponding period last year.


In the first three months of the year, China produced 10.1 million tonnes primary aluminium, a rise of 5.9 % from the same period last year, the data showed. Production of ten nonferrous metals - including copper, aluminium, lead, zinc and nickel – rose 6.9% on-year to 6.28 million tonnes, a record high.


Year-to-date output was up 9% at 18.26 million tonnes. The other non-ferrous metals are tin, antimony, mercury, magnesium and titanium. ($1 = 6.8752 Chinese yuan renminbi) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ China primary aluminium production ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Siyi Liu and Dominique Patton; Editing by Christian Schmollinger)

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