In June, the proportion of liquid aluminium at domestic aluminium smelters continued to rise, up 0.1 percentage points M-o-M to 75.8 per cent. The increase was smaller than expectations at the start of the month, mainly due to high alloy inventory at downstream facilities and increased casting ingot production at some smelters. The proportion of liquid aluminium is expected to pull back in July. Based on SMM's data on proportion of liquid aluminium, domestic aluminium casting ingot production in June decreased 12.77 per cent Y-o-Y to around 872,500 tonnes.
Capacity changes: As of month-end June, SMM statistics showed China's existing aluminium capacity at approximately 45.69 million tonnes (SMM adjusted the figure in late April by eliminating double calculations after taking into account capacity replacement and old plant dismantling). Operating capacity stood at around 43.83 million tonnes. The operating rate edged down M-o-M due to capacity replacement programmes. SMM learned that the Shandong-to-Yunnan replacement project required the old smelter to complete production cuts and pass inspection before new pots could be started at the new facility. SMM will continue tracking aluminium capacity changes.
