In December alone, China produced 3.87 million tonnes of primary aluminium, marking an increase of 3 per cent from the same month in 2024 and a 2.1 per cent rise from November, the NBS data showed.
Strong profitability supported stable smelter operations in December, resulting in generally steady output levels. The modest on-month increase mainly came from production lines that were commissioned or had resumed output in the Inner Mongolia and the Xinjiang autonomous regions, market watchers said.
Despite a slight uptick in primary aluminium production costs last month, due mainly to higher electricity prices, cost growth was limited compared with the rise in primary aluminium prices. Mysteel's monthly survey showed that the weighted average complete cost for China's primary aluminium industry stood at RMB 15,948 per tonne (USD 2,290 per tonne) in December, up by a marginal 0.2 per cent on month.
During the same month, primary aluminium prices continued to strengthen. Mysteel assessed the weighted average monthly price for primary aluminium ingots with a purity above 99.7 per cent at RMB 21,933 per tonne in December, up by 2 per cent from November.
As price gains significantly outpaced cost increases, industry profitability expanded further last month. According to Mysteel's survey, average profits among the 89 primary aluminium smelters under its tracking rose by 6.8 per cent on month to RMB 5,985 per tonne in December, the highest level since Mysteel began tracking profits in January 2019.
