China's aluminum production reached record levels in August
While China's aluminum production broke records in a move to close the supply deficit in the Middle East, the steel sector experienced a decline due to the impact of the real estate crisis.
Aluminum production in China reached a record level in August, driven by facilities seeking to close the gap created in global supply by the conflict in the Middle East.
Record Increase in Aluminum Production
According to data released by the National Bureau of Statistics on Tuesday, the country's aluminum production recorded a 4.7 percent increase year-on-year in August.
With this increase, monthly production approached 4 million tons, while the total production volume in the first eight months of the year surpassed the 31 million ton threshold.
Approaching Capacity Limits
The latest production figures revealed how quickly the country is approaching the annual capacity cap of approximately 45 million tons set by the central government.
Real Estate Pressure on the Steel Sector
Contrary to the activity on the aluminum front, steel production across China recorded a 3.7 percent decline year-on-year in August.
The deep real estate crisis that has persisted in the country for a long time continues to suppress and weaken metal demand.
Year-End Expectations
Due to ongoing demand pressure and troubles in the real estate sector, steel production is expected to close the year at its lowest level seen since 2018.