China aluminium output hits record quarterly high despite capacity cap
China's primary aluminium production hit a record quarterly high in July to September, official data showed on Monday, as smelters maintained high operating rates despite a longstanding government-imposed capacity ceiling.
The world’s top aluminium producer churned out 11.84-million metric tons of the metal in the third quarter, up 2.2% from a year earlier and 0.5% from the previous quarter, according to Reuters calculations based on data from the National Bureau of Statistics.
Production rose 3.1% year-on-year to 3.91-million tons in September, but eased from a monthly record of 3.98-million tons in August.
However, average daily output increased to about 130 300 tons in September from 128 400 tons in August, Reuters calculations showed, suggesting smelters continued to operate at high rates.
In the first nine months of the year, China produced 35.03-million tons of primary aluminium, up 3.8% from a year earlier.
At that pace, annual output would reach about 46.7-million tons. A 45-million-ton annual smelting capacity ceiling has been in place since 2017 to curb overcapacity and pollution.
The ceiling applies to installed capacity rather than actual production, allowing smelters to produce more than their nominal capacity through technological improvements and operational efficiencies, aided by strong profits.
Higher aluminium prices following Middle East supply disruptions, coupled with relatively low raw material costs, have supported strong smelting margins and encouraged Chinese producers to maximise output.
China produced a record 45.02-million tons of primary aluminium in 2025, up 2.4% from a year earlier.
Production of 10 nonferrous metals – including copper, aluminium, lead, zinc and nickel – rose 0.1 % to 6.93 million metric tons from a year earlier.
Year-to-date output was up 2.5% at 62.35-million metric tons.