Bauxite mines in China’s Shanxi have come under the environmental scanning, Shanghai Metals Market report confirmed. The mines lacking production licenses have been ordered to close operations by September 14. Bauxite supply shortage had already been looming large over alumina refineries in Shanxi; the recent development is expected to aggravate the problem for the alumina producers there.
Shortage in bauxite supply has reportedly affected production at two alumina refineries in Shanxi. Xing’an Chemical Co. put their facilities under maintenance in advance, which is expected to last 25 days. The entire maintenance schedule is estimated to affect alumina output by about 100,000 tonnes.
China Power Investment Corporation Shanxi Aluminum Co. also shuttered down two of their alumina production lines, affecting one million tonnes per annum of capacity.
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With local alumina production facing raw material supply challenges, alumina prices in China local markets are expected to rise in the near term. However, whether the price rise will happen across the board or not will depend partly on the amount released and sales price set by Shandong Weiqiao Group, the biggest in the provincial market.
There were also speculations that all bauxite mines in Shanxi, irrespective of whether they have production licenses or not, would shut down during the 19th NPC meeting this autumn and National Games from August 27 to September 8. However, the news could not be confirmed by the local industry sources.
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