The social inventory of electrolytic aluminum will turn to the accumulation stage
The data shows that as of December 1, the social inventory of domestic electrolytic aluminum had dropped to 500000 tons, creating a historical low. The continuous decline in inventories has become a key factor supporting the strengthening of aluminum prices in the near future. Near the end of the year, the electrolytic aluminum inventory may enter the cumulative inflection point.
By the end of November, the operating capacity of domestic electrolytic aluminum had risen to 40.61 million tons. From the operation of electrolytic aluminum enterprises, the new production reduction in November mainly came from Henan. The production reduction is 80000 tons due to the environmental protection policy requirements in the heating season and the high cost pressure. At present, the implementation of the production reduction has been completed.
In terms of resumption of production, in November, the Department of Industry and Information Technology of Guangxi issued the Policy and Measures on Supporting the Steady Growth of Some Key Industries, pointing out that it is necessary to support electrolytic aluminum enterprises to accelerate their cell opening and improve their capacity utilization. For electrolytic aluminum enterprises that have shut down their cells since this year and have achieved capacity improvement in the fourth quarter, certain rewards will be given according to the level of capacity utilization improvement. In November, the total scale of resumption of production in Guangxi reached 150000 tons, which is expected to continue to grow in December.
Influenced by factors such as maintenance and lack of water and electricity, electrolytic aluminum enterprises in Sichuan have a slow pace of recovery. In November, the scale of recovery reached 150000 tons, and by the end of December, the operating capacity will be around 700000 tons. In terms of new production, the new capacity of Baiyinhua, Inner Mongolia, continued to climb in November, and the operating capacity increased by about 50000 tons month on month. It is estimated that there is still room for small growth in the future.
