Morning Bites

🏭Global primary aluminium output increased 2.4% YoY in January, after the +2.1% YoY in December, the International Aluminium Institute reports. Specifically, China’s output (59% of global Al output) rose 2.8% YoY, following the improved power supply in previously drought-hit parts of the country's hydro-electric system. In our view, potential recovery in construction activity in China (~58% of global primary Al demand in 2022), bolstered by new economic stimulus and record high liquidity injections in early-2024, remains the key trigger for subdued Al prices (with >50% of global Al suppliers breakeven or loss-making at current prices, on our numbers)

To recap, China’s aluminium supply is to rise >2.5% YoY to 42.7mnt this year, according to industry participants, if new projects start up in 3Q24 as planned

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