China’s alumina capacity to ramp up in Q1 2022; Wenfeng refinery to put 2400 ktpa capacity into operation

According to official sources, three alumina refineries in China are set to commence or increase production in the first quarter of 2022. Wenfeng alumina refinery in Hebei province of northern China will reportedly come online with a capacity of 2,400 kilo tonnes per year.

On the other hand, Bosai and Tiangui will release capacity at 3,600 and 1,700 kilo tonnes per year in Chongqing and Guizhou provinces of southern China, said sources.

In addition, aluminium production of 500 kilo tonnes per year will start, which will smelt alumina into the light metal. This, however, may widen the gap between supply and demand, leaving the alumina market volatile.

According to the last SMM data, China’s alumina production in November 2021 stood at 6.24 million tonnes, of which metallurgical-grade alumina was 6.1 million tonnes. On a month-on-month calculation, the production of metallurgical-grade alumina edged 0.83 per cent higher than 6.05 million tonnes.

The net imports of alumina were estimated at around 350,000 tonnes in November as the import window was open throughout November. China’s alumina surplus was about 543,000 tonnes in the said month.

As of early December, China’s metallurgical-grade alumina operating capacity was 74.24 million tonnes per year, with the installed capacity at 88.6 million tonnes per year.