SINGAPORE, Nov 15 Reuters China39;s October aluminium output rose from a year earlier, official data showed on Friday, with a firm demand outlook and higher prices offsetting rising raw material costs.

The world39;s biggest aluminium producer churned out 3.72 million metric tons of primary aluminium last month, up 1.6 yearonyear, data from the National Bureau of Statistics showed on Friday.

In the first ten months of the year, China produced 36.39 million tons, a rise of 4.3 from the same period last year, the data showed.

Smelters ramped up their operations this year as the market turned more profitable and demand improved.

In October, the main producing regions Shandong, Xinjiang and Inner Mongolia maintained strong operating rates, while some new capacity was added in the southwestern China, according to local media reports.

Beijing39;s barrage of economic stimulus in late September and measures to revive its property market also bolstered the demand outlook for the light metal, used in construction, transportation and packaging.

The mosttraded aluminium contract on the Shanghai Futures Exchange hit over 21,650 yuan 2,993.56 per ton earlier this month, a more than fivemonth high.

Higher prices offset rising production costs, even with prices of the key raw material alumina climbing as authorities in Guinea suspended exports of bauxite, used to make alumina, in an already tight market.

Local information provider Mysteel estimated aluminium production costs…