China Nov aluminium output rises on new capacity ramp-up
Writes through with details
By Violet Li and Mei Mei Chu
SHANGHAI, Dec 16 (Reuters) -China's aluminium output in November rose from a year earlier, official data showed on Monday, following capacity increases that offset the impact of declining industry profits.
Aluminium output in November rose 3.6% from a year earlier, reaching 3.71 million metric tons, according to data released by the National Bureau of Statistics. China is the world's biggest aluminium producer.
Daily output in November averaged 123,667 tons, a 3% increase from October's average of 120,000 tons, based on Reuters' calculations.
The higher output was attributed to newly-added capacity in the northwestern region of Xinjiang and resumed operations in the southwestern region, information provider Shanghai Metals Market said in a report last week.
Aluminium traders and producers last month also rushed to ship their cargoes before a change in export tax rebate policy, that in turn lent some support to production of primary aluminium, traders said.
Some smelters, however, reduce operations for maintenance during the winter months, when hydroelectric power supplies are lower, and following a surge in prices of alumina, their main ingredient.
The most-traded alumina contract SAOc1 on the Shanghai Futures Exchange stood at 5,539 yuan ($761.08) per ton at the end of November, 8% higher than 5,127 yuan per ton at the end of October.
The price rise has followed a shortage of bauxite from Guinea, China's biggest supplier. Bauxite is the primary ore from which alumina is extracted, and alumina is then refined to produce aluminium.
The higher costs meant the industry's average profit plunged 60.8% from the prior month to 1,003 yuan, according to state-backed research house Antaike.
In the first eleven months of the year, China produced 40.22 million metric tons, a rise of 4.6 % from the same period last year, the data showed.
Production of 10 nonferrous metals - including copper, aluminium, lead, zinc and nickel – rose 1.5 % to 6.71 million metric tons from a year earlier. Year-to-date output was up 4.4% at 72.29 million metric tons. The other non-ferrous metals are tin, antimony, mercury, magnesium and titanium.
Reporting by Violet Li and Mei Mei Chu; Editing by Jacqueline Wong
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