According to the Shanghai Metals Market, alumina production in China during February 2022 (28 calendar days) stood at 5.47 million tonnes versus 6.5 million tonnes in January (31 calendar days). That reflected a downfall of 15.85 per cent month-on-month. The output of metallurgical-grade alumina stood at 5.27 million tonnes in February compared to 6.28 million tonnes a month ago.
According to the Shanghai Metals Market, the average daily output of metallurgical-grade alumina in February 2022 stood at 188,000 tonnes.
Impact on the roasting capacity of alumina refineries in Shandong due to heating season policy and strict environmental protection was one of the primary reasons for the decline in alumina output during February. In Shanxi, alumina output decreased by 21 per cent month-on-month in February, while production in Henan declined by 32 per cent. In Guangxi, output at refineries fell by 24 per cent month-on-month, as a consequence of unprecedented outbreak of new Covid cases in Baise in early February.
So, SMM summed up that alumina production saw severe impacts in the first half of February, which only started recovering in the latter part of the month with the relaxation of environmental protection policies and reasonable control of the pandemic in South-west China.
In February, estimated net imports of alumina stood at 150,000 tonnes compared to 200,000 tonnes in January. Hence, there was a shortage of 255,000 tonnes of alumina in the said month. Nonetheless, the release of new alumina capacities and rapid recovery of existing capacities will likely offset the supply shortage in the near future. SMM data shows alumina supply and demand will return to a tight balance – 1 tonnes of aluminium consumes:1.925 tonnes of alumina.
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