China’s alumina import to rise in coming months on tight local supply due to Xinfa refinery shutdown

China’s alumina import is estimated to rise in the coming months as the shutdown of Xinfa alumina refinery in early May could affect the local supply. Market sources said on Tuesday, May 28, that the amount of import may range between 60,000 tonnes to 160,000 tonnes.

An Australian refinery source estimated that around 2 million tonnes per year of alumina output was cut, which was equivalent to 160,000 tonnes per month, resulting in increased inquiries for spot Australian alumina.

General Administration of Customs data showed that China in April had imported 56,786 tonnes of alumina, double the 27,156 tonnes of imports in March. The country’s average alumina import during January-April had amounted to 53,985 tonnes per month.

Chinese and Australian alumina refinery, aluminium smelters, and trading houses said that Chinese imports may rise ahead to cover the cuts, but did not mention the specific duration. They only said that it would depend on fundamental demand and supply, prices in the international and local market, and exchange rates.

The shutdown of alumina refineries in China is expected to last two to four months, industry sources estimated. On May 9, Jiaokou government circular said refineries were asked to close but did not say how long the shutdown would last.

China's state-run metals consultancy Beijing Antaike said on May 13 that the Xinfa Jiaokou Feimei refinery was ordered to shut its 2.8 million tonnes per year alumina capacity, while Shangxi Xiaoyi Huaqing Aluminium its 0.4 million tonnes per year alumina capacity, both in Shangxi province, northwest China. Before this incident, the supply was already tight in China due to environmental output cuts.