Rising Chinese aluminium output pressures alumina supply

The mismatch of supply and demand is clear to see in the relative price performance of the Shanghai Futures Exchange’s alumina and aluminium contracts. — Reuters

CHINA’S production of primary aluminium is closing in on last year’s record highs as previously idled capacity ramps up in Yunnan province.

The country increased production by 5% year-on-year to 3.65 million tonnes in May, according to the latest estimate from the International Aluminium Institute.