Alumina production capacity in Shanxi, Shandong and Henan is reduced to 15.02 mtpa; supply woes to last longer

According to the Shanghai Metals Market report, alumina production capacity in Shanxi, Shandong, and Henan has come in at 15.02 million tonnes per year for the moment after being undergone output cuts or suspensions due to environmental protection policies.

Most refineries in Jinzhong and Lvliang in Shanxi have suspended or reduced roasting capacities, with a combined capacity of 5.95 million tonnes. In Zhenzhou, Jiaozuo, Sanmenxia and Luoyang in Henan, alumina refineries have collectively slashed the operating capacities by 4.67 million tonnes. Refineries' operating capacities in Binzhou and Zibo in Shandong have fallen by 4.4 million tonnes. 

However, there are still some alumina refineries operating normally in these three provinces of China due to the difference in local production cut policies. Some refineries have also reported that they are allowed to resume production when the weather turns better. Many others say the production restrictions will be in place until late February or mid-March.

Production restrictions in Shanxi, Shandong, and Henan will affect the daily alumina supply and reduce it by 41,200 tonnes in the coming days. As such, the market becomes more and more concerned about the supply shortage, while aluminium smelters are eager to hoard stocks, which will further scale up the domestic alumina prices.