Production capacity
As of July 31, 2025, the built capacity of aluminum bars in China was 28.869 million tons, with 14.352 million tons under construction. The capacity utilization rate was 50.84%. The built capacity increased by 200,000 tons compared to June, mainly in Xinjiang. A major factory in Xinjiang newly invested in the construction of its second factory, with a total increase of 200,000 tons in built capacity.
By region, the monthly operating rates in Gansu, Inner Mongolia, Qinghai, Shanxi, Shaanxi, Xinjiang and Yunnan remain relatively high. Overall, the operating capacity in Gansu, Guangxi, Inner Mongolia and Xinjiang has slightly decreased.
Output
In July 2025, China's aluminum water bar output was 1.2231 million tons, an increase of 8.33% year-on-year and 0.08% month-on-month. The average daily output was 39,500 tons, a decrease of 1,300 tons compared to the average daily output in June 2025. This month, the production changes of aluminum bar enterprises were relatively frequent, with both increases and decreases. The main reasons for the increased production are the resumption of production at the bar factories that had previously reduced production and the increase in orders for some individual enterprises. The production reduction is mainly affected by factors such as technological transformation, furnace maintenance, order reduction, and the switch to other products. Specific analysis: In terms of increased production: It is mainly reflected in Gansu, Guangxi, Guizhou, Qinghai, Shandong, Shanxi and Xinjiang regions. The increase in production at the two bar factories in Gansu and Guangxi is mainly due to the completion of furnace maintenance. During the technological transformation period, a small factory in Guizhou region produced more aluminum rods. A major factory in Qinghai Province has been operating at full capacity since July. This is mainly due to the reduced purchase of molten aluminum by other downstream processing enterprises in the park. All the molten aluminum provided to this factory is used for the production of aluminum rods. A small factory in Shandong has completed maintenance and increased production. Additionally, three large factories have also increased production of aluminum rods due to increased orders. A self-supplied aluminum water bar factory in Shanxi Province has seen a slight increase in orders and production. The second plant of a major factory in Xinjiang has been newly put into operation, with an additional 200,000 tons of completed production capacity. The output in July increased significantly. In terms of production cuts: Aluminum bar factories in Gansu, Guangxi, Inner Mongolia, Qinghai, Shandong and Xinjiang have reduced production. Two factories in Gansu have cut production due to a decline in orders. The production cut at Guangxi Bar Factory A is mainly due to furnace maintenance, the production cut at Factory B is mainly due to the increase in aluminum rods, and the production cut at Factory C is mainly caused by order and cost pressure. The reduction in production at the bar factory in Inner Mongolia is mainly due to the current low processing fees for aluminum bars, which are difficult to cover their production costs and increase the output of aluminum ingots. A major factory in Qinghai region has slightly reduced the production of aluminum rods according to orders. A major factory in Shandong has increased production of aluminum rods and reduced production of aluminum bars. In Xinjiang region, A-bar factories have reduced production of aluminum bars due to demand, and B-bar factories have also cut production due to technological transformation. Overall, the average daily output of aluminum bars slightly decreased in July 2025. The demand for aluminum bars did not improve in July. The lack of orders at the terminal and the decline in production capacity led to insufficient purchasing capacity from downstream. As of July 31, the inventory statistics of 6063 aluminum bars in China (five regions) were 138,900 tons, a decrease of 1,600 tons compared with the same period of the previous month (2025.06.30). It decreased by 1.14% compared with the previous period. Wuxi: 32,700 tons, Foshan: 56,300 tons, Nanchang: 14,700 tons, Changzhou: 8,600 tons, Huzhou: 26,600 tons. Among them, the inventory in Wuxi area accumulated by 12,700 tons compared with last month, that in Foshan area decreased by 10,700 tons, that in Nanchang area decreased by 8,600 tons, that in Changzhou area accumulated by 3,400 tons, and that in Huzhou area accumulated by 1,600 tons compared with last month. Aluminum bar inventories in East China have accumulated significantly, while those in Foshan have been reduced. However, some holders have reported that there is a considerable amount of hidden aluminum bar inventory in the Foshan market that has not been placed in delivery warehouses. As a result, the social inventory of aluminum bars has been reduced. In July, the quotations of aluminum bar holders generally dropped, the industry's losses intensified, and the production enthusiasm of bar factories was somewhat dampened, with the scale of production cuts expanding compared to the previous month.
Processing fees for aluminum water rods in mainstream regions
The average spot price of aluminium rose in July 2025 (July 1st - July 31st). The average spot price in East China was 20,706 yuan per ton, up 174 yuan per ton compared with June, representing a growth of 0.85%. The average spot price in South China was 20,679 yuan per ton, up 288 yuan per ton compared with June, representing a growth of 1.41%. With the easing of tariff policies, the price of aluminum in the overseas market has risen. Coupled with the impact of China's anti-internal competition policy, the spot price of aluminum has gone up. The national average daily processing fee for 120mm 6063 series aluminum alloy round cast bars is 129 yuan per ton, a decrease of 89 yuan per ton compared to the average price of 218 yuan per ton in June, representing a decline of 40.83%. On that day, the price in Nanchang area was discounted by 100 yuan per ton at the lower end. In Foshan and Gongyi areas, there were also cases of selling at a discount or even at a discount within the month. The overall market spot trading atmosphere was poor. Without the support of actual transaction benefits, the processing fee for aluminum rods is generally in a downward trend.
