China’s alumina and aluminium productions record a hike in July: SMM updates

Shanghai Metals Market has recently unveiled a roundup of the total production of base metals including alumina and aluminium in China for the month of July, after surveying major producers in the market to obtain first-hand information for calculation.

China’s total output of alumina in July recorded an increase by 2.4 per cent from the contemporary period of previous year to stand at 5.91 million tonnes, while the daily average output plunged by 4.1 per cent to 191,000 tonnes. This decline in daily average output could be primarily because of the production cut and refinery maintenance at some of the major producers in China including Chalco Shanxi, Sanmenxia Kaiman, and Shanxi Huaxing on tight bauxite supplies in the market.

However, the country is hopeful about its production in August estimating it to grow to 6.06 million tonnes with daily average production to expand to 196,000 tonnes, backed on output cut recovery and ending of maintenance.

Production of primary aluminium also grew in China in the said month marking the first year-on-year growth in 2018. Compared to the corresponding period of previous year, it stood at 3.13 million tonnes after increasing 0.2 per cent. In the first seven months of the year, the total output stood at 20.94 million tonnes, down 2.2 per cent from a year ago.

As of the end of July, the annualised operating capacity stood at 37.5 million tonnes, idled capacity registered at 4.4 million tonnes and operating rates at 89.5 per cent. Operating capacity in July fell 200,000 at 4.4 million tonnes from June because of the shut down or replacement of some of the high-cost capacities across Henan, Shandong, Shaanxi, and Gansu provinces and also due to the slow commissioning of new plants in Inner Mongolia and Guangxi province.

Operating capacity in August is likely to grow slightly from July, while output to increase to 2.2 per cent on the year to 3.13 million tonnes, SMM learned.