Shandong alumina refineries to slowdown capacity expansion

Alumina capacity expansion in Shandong, one of China’s major alumina producing hub is going to witness limited progress in the foreseeable future, showed recent survey report produced by Shanghai Metals Market.

Several major alumina refineries in the region said they would not invest further in expansion projects of their refineries as environmental regulations are becoming stricter by the day.

The report identified another factor responsible for Shandong alumina capacity expansion halt. Local alumina market is almost saturated, so any further addition to the capacity would put a downward pressure on the alumina prices. Margins of alumina refineries will also be affected due to locked investments.

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Alumina producers in China said they would rather prefer to expand capacity in Shanxi and Guangxi regions, where the markets are yet to become saturated. Southeast Asian market is also currently under construction and would see major expansion in the coming quarters.