China’s average daily aluminum output rose to a record 56,800 metric tons in December, according to data from the International Aluminium Institute.
“This is a record high for China,” Nadine Faldo, a manager for safety and statistical reporting, said by e-mail today.
Output increased 2.5 percent from 55,400 tons a day in November and 17 percent from 48,400 tons a day in December 2011, the IAI data showed. China’s aluminum production rose to 1.72 million tons in December from 1.66 million tons in November, the National Bureau of Statistics said today.
Aluminum for three-month delivery rose 0.9 percent to $2,095 a ton by 4:25 p.m. on the LME. The metal gained 2.6 percent last year.
The metal is bracing for the biggest glut since 2009, with supply expected to outpace demand by 1.79 million tons, Barclays Plc said in a Jan. 16 report. Aluminum will average $1,900 a ton in the first quarter, the bank estimates.
“The critical component of a near 1.8 million-ton surplus is that Chinese production growth will increase to close to 12 percent,” Gayle Berry, a London-based analyst at Barclays, wrote in the report.
Outside China, average daily output was 68,000 tons last month, compared with 67,700 in November and 70,600 tons in December 2011, according to IAI data.