The prevailing demand deficit for primary aluminium in China continued to affect domestic prices throughout November 2023. Slow metal supply across the market due to production cuts at Yunnan, resulting in rapid inventory fall, could not cast much positive impact on prices. However, it is believed that domestic automobile production growth in November may have supplemented the aluminium demand and offset the prices.
China's automobile production and sales in November 2023
According to the data released by the China Automobile Association, China's automobile production witnessed a month-on-month growth of 7 percent and a year-on-year hike of 29.4 percent, amounting to 3.093 million units in November 2023. The data showed that sales also increased by 4.1 per cent M-o-M and 27.4 per cent Y-o-Y to 2.97 million units. Of the total units sold, 2.488 million cars were sold domestically.
Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, shared his projection that at the end of 2023, China's automobile sales would reach around 30 million units, marking an 11.7 per cent rise Y-o-Y. He also said that this figure would grow further in 2024 to stand around 31 million units, being one of the significant drivers of aluminium demand.
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