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China aluminium output hits record as inventories swell, boosting downside risks for prices
Commerzbank analysts Barbara Lambrecht and Volkmar Baur report mixed trends in China’s metals market, with aluminium production rising while demand remains weak. They note that domestic supply is increasing faster than domestic consumption. In April, China’s primary aluminium output was 3.1% higher than a year earlier, after a 2.7% rise in March. Daily production reached a record 129,000 tonnes. Strong margins, supported by higher aluminium prices and lower alumina costs, are pushing output above the government’s annual cap of 45 million tonnes. April’s production rate, annualised, equated to 47 million ... (full story)