Morning Bites (part 2)

🏭Global primary aluminium output rose 3% YoY in September, vs. the 2% YoY growth in August, the International Aluminium Institute reports. Specifically, China’s production increased 4% YoY, while ex-China production inched up 1% YoY (also +1% vs. 2019). According to Reuters, China (59% of the global Al output in 2022) is experiencing a production surge (+0.8mnt in 9mo23) amid improved power supply in previously drought-hit parts of the country's hydro-electric system. Overall, the dynamics are in line with previous estimates of the maximum resumption of 1.3mnt of China’s halted Al capacity (~2% of global 2022 output). Meanwhile, further production growth seems unlikely to us, given that >50% of global Al suppliers are currently breakeven or loss-making at spot, on our numbers, amid low Al prices

#aluminium
https://metals-wire.com:3000/sector/Aluminium