The price of aluminium increased by 0.37%, reaching ₹216.05, as the market reacted to several supply-side events. August is predicted to see a minor increase in refined zinc production, which could have an impact on the larger base metal markets. China’s domestic production of aluminium increased significantly, reaching 3.683 million metric tonnes in July 2024 a 3.22% year-over-year rise.
The restart of scattered capacity in Sichuan Province, new capacity additions in Inner Mongolia, and the complete restoration of aluminium smelters in Yunnan Province were the main drivers of this expansion. Global primary aluminium production increased 3.2% year over year in June to reach 5.94 million metric tonnes, as reported by the International Aluminium Institute (IAI).
With China leading the way, worldwide output rose by 3.9% to 35.84 million metric tonnes in the first half of 2024. Although the IAI predicted a 5.2% increase to 21.26 million metric tonnes for the same period, China’s production of aluminium increased by 7% to 21.55 million metric tonnes in the first half of the year. In comparison, the production of aluminium increased by 2.4% in Russia and Eastern Europe, and by 2.2% in Western and Central Europe.
Premiums for shipments to Japanese buyers for the July–September quarter increased by 16%–19%, to $172 per metric tonne, indicating a tightening of the aluminium market in Asia. At the end of June, the three main ports in Japan had 317,860 metric tonnes of aluminium in store, a 3% increase from the previous month.
