Alumina production in Guizhou province may be hit due to raw material scarcity

As seen by Shanghai Metals Market analysts, alumina production in Guizhou province, one of China’s major alumina producing regions, will be severely affected by raw material shortages in June. This might bring down the output and put pressure on alumina price in china’s domestic markets.

After recent environmental checks, most of the bauxite mines in Guizhou were shut down as they failed to clear the environmental inspections. Currently, only Chalco’s Maida bauxite mine, which meets the environmental protection requirement, is running its operations. Local mines failed to reach the required standards during the environmental rechecks at the end of May. They would not be allowed to resume production until they improve their mode of operations meet requirements. This will tighten bauxite supply to the Guizhou refineries in June. 

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Limestone supply is currently tighter than bauxite as almost all lime producers in Guizhou closed in May and are not expected to resume production in June. All these factors put together may bring down the alumina production in the current month.