Global aluminum production reached 5.25 million metric tonnes in June, the International Aluminum Institute reported.

The June total marked a decline from the 5.43 million metric tonnes produced in May and the 5.33 million metric tonnes produced in June 2018.

The world’s top-producing country was China, turning out 2.96 million metric tonnes in June, down from the 3.05 million metric tonnes produced in June 2018.

Aside from China, Asian producers combined to smelt 360,000 metric tonnes of primary aluminium in June, down by 8,000 metric tonnes in June 2018. Producers from the Gulf Cooperation Council (GCC) teamed up to produce 449,000 metric tonnes of primary aluminium, up from last year’s total of 437,000 metric tonnes in June 2018.

European producers diverged May, with those in the west recording a drop on the year last June from 310,000 metric tonnes to 284,000 metric tonnes May. Meanwhile, aluminium producers in Eastern and Central Europe experienced an 11000 metric bump on the year in aluminium production to 344,000 metric tonnes.

Aluminium production was up in the Western Hemisphere, with North American producers increasing production by 11,000 metric tonnes on the year to 314,000 metric tonnes, while South American producers combined to smelt 95,000 metric tonnes of aluminium in May, up by 7,000 metric tonnes in June 2018.

Production by African producers fell slightly, dropping from 140,000 metric tonnes in June 2018 to 135,000 metric tonnes last month.

As for prices, LME aluminum has been trending downward since March.

The LME aluminum price reached a 2019 high of $1,922 per tonne March 20. In the ensuing three months, however, the price has been sliding, hitting $1,764.50 per tonne June 24.

DEMAND AND PRODUCTION

ccording to the Aluminum Association’s monthly Aluminum Situation report, aluminum demand in the US and Canada increased an estimated 0.4 per cebt over the first four months of the year.

Demand reached an estimated 9,547 million pounds for the year through April, according to the Aluminum Association.

Demand for semi-fabricated products reached 6,914 million pounds, marking a 2.6 per cent increase, while apparent consumption in domestic markets reached an estimated 8,505 million pounds, marking a 1.8 per cent increase on a year-over-year basis.

In terms of production, the Aluminum Association reported primary production in the US and Canada reached an annual rate of 4.01 mt in May, marking a 0.4 per cent decline from the April rate.

In other aluminum news, US recovery of aluminum and aluminum alloys (that is, scrap) fell 6.4 per cent in Q1 2019 compared with Q1 2018.

The Aluminum Situation report cites data from the US Geological Survey (USGS), which said the US aluminum industry purchased 1,882 million pounds of aluminum scrap in Q1 2019.

On the other hands, scrap exports during Q1 2019 increased 22.6 per cent on a year-over-year basis, reaching 1,033 million pounds.

In other aluminum news, aluminum producer Alcoa announced the planned restart of its Aluminerie de Bécancour smelter in Quebec, Canada, after it reached a six-year labour agreement with the United Steelworkers Union.

The smelter, majority-owned by Alcoa, has an annual capacity of 413,000 tons. The restart is scheduled to begin Friday, July 26, and is expected to be complete during the second quarter of 2020, the company said.

The company forecast a global aluminum deficit ranging between 1.0 million tonnes and 1.4 million tonnes for 2019, down from last quarter’s forecast of a range of 1.5 million tonnes and 1.9 million tons.

In addition, the company forecast global aluminum demand growth ranging between 1.25-2.25 per cent, down from a previous forecast of 2-3 per cent. The decline in the growth forecast was “driven by lower demand in both China and the world ex-China due to trade tensions and macroeconomic headwinds,” the company said.