Although the combined data for two months reflect a year-on-year increase, output fell in either of these two months. The annual growth of amalgamated primary aluminium production resulted from increased profit margins.

According to a Reuters report based on Antaike’s research, smelters enjoyed an average profit of RMB 1,964 per tonne in February 2024, which was 50 per cent higher than the corresponding period of the previous year.

Reuters also reported that February profits decreased month-over-month due to the rally in the price of alumina, a key raw material for smelters.
According to SMM prices, China’s average alumina spot price on January 29 climbed to a two-year high at RMB 3,351 per tonne. At the end of February, the price was slightly down at RMB 3,345 per tonne but overall displayed an uptrend. The current alumina spot price stands much lower than the previous two months at RMB 3,317 per tonne, experiencing relentless downfall last week.