China's May Economic Data: Retail Surge and Industrial Slowdown Impact Metal Markets
Surge in China's Aluminium Production Sparks Price Drop Despite Robust Demand Prospects
China's primary aluminium production surged by 7.2% in May, reaching its highest level in nearly a decade, fueled by robust growth prospects in the solar and electric vehicle (EV) sectors.
According to National Bureau of Statistics data, the world's largest aluminium producer produced 3.65 million metric tons of primary aluminium in May, the highest monthly total since November 2014. For the first five months of the year, production reached 17.89 million metric tons, a 7.1% increase from last year.
Expectations of increased demand from the solar and EV sectors spurred speculative buying in aluminium, pushing prices to a two-year high of $2,700 per metric ton last month. However, the market has struggled to absorb the additional supply, leading to a subsequent price decline.
Despite strong demand projections from the EV and solar industries, the aluminium market is grappling with an oversupply issue. Analysts predict that aluminium prices will continue to face downward pressure in the coming months due to the substantial increase in Chinese production.
(By Commoditiescontrol Bureau: 09820130172)