Chinese alumina producers Aluminium Corporation of China and Luoyang Heungkong Wanji Aluminium Co Ltd have announced major alumina production cuts in the provinces of Shanxi and Henan respectively. Shanxi province is China’s second biggest alumina producing province.
Reuters reported that Luoyang Heungkong Wanji Aluminium Co today announced it has cut alumina production by 680,000 tonnes on an annual basis, citing high bauxite prices and low alumina prices. “On the one hand, the (alumina) price is low,” Deputy General Manager Wu Xingzhong told Reuters by telephone. “On the other hand, it’s because there is no ore [bauxite],” he said.
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Aluminium Corp of China, known as Chalco, announced on Thursday, July 5, that it would cut 770,000 tonnes of annual alumina production capacity at its Shanxi New Material unit in northern China’s Shanxi province. “As affected by the market environment and other factors, the cost of bauxite in Shanxi continues to rise, while the market price of alumina keeps low,” Chalco said.
With annual capacity of 16.86 million tonnes as of December 2017, Chalco is one of the country’s biggest alumina refiners.
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