Chalco Reports Increased Aluminium and Alumina Output in January-September

Chalco

Chalco, China's state-owned aluminium producer, has reported notable increases in both its primary aluminium and alumina production for the January-September period, compared to the same period last year. The rise in output is reflective of strong domestic demand for these materials, which have supported price growth across the industry.

During the first nine months of 2024, Chalco’s primary aluminium output, including aluminium alloys, rose by 14% year-on-year, reaching 5.62 million tons (mn t). This increase in production aligns with a 13% rise in primary aluminium sales, which also reached 5.6 million tons over the same period. This performance underscores Chalco's strong market position in the aluminium sector, with solid sales and production figures helping to bolster its standing in an increasingly competitive market.

Chalco also saw a slight increase in its metallurgical alumina output, a crucial feedstock used in primary aluminium production. The company produced 12.57 million tons of alumina in January-September, marking a 0.9% rise over the previous year. However, the company reported a decline in alumina sales, which fell by 4.8% to 4.77 million tons during the same period.

In terms of product segmentation, Chalco’s fine alumina production grew by 15% year-on-year, reaching 3.25 million tons, up from 5.01 million tons in 2023. Fine alumina is used in the production of higher-value products, and this increase reflects Chalco's shift towards higher-quality, more profitable outputs.

The increase in both aluminium and alumina production was supported by strong domestic demand, which helped push prices higher during the reporting period. Chalco noted that higher profitability within the aluminium and alumina production sectors encouraged manufacturers to maximize their production run rates, further driving output.

According to China's National Bureau of Statistics, the country’s total aluminium production grew by 4.6% year-on-year to 32.56 million tons in the January-September period, while alumina output rose by 2.4% to 63.13 million tons.

Strong Demand Supports Price Growth in Aluminium and Alumina

The performance of Chalco and other domestic producers is being driven by persistent domestic demand in China, one of the world’s largest consumers of both aluminium and alumina. Rising prices for both materials have contributed to improved profitability across the industry. Despite a decline in alumina sales, Chalco’s overall production and sales growth in aluminium highlights a promising outlook for the company in the remainder of the year.

As Chalco continues to ramp up production, it is expected that the market will remain focused on the ongoing balance between domestic demand, production capabilities, and price fluctuations, particularly as global economic conditions continue to evolve.