China’s alumina production grows 3.19% in May, daily output remains flat

China’s alumina production in May stood at 5.83 million tonnes, including 5.58 million tonnes of metallurgical-grade alumina, found Shanghai Metals Market. This was up by 3.19 per cent from 5.65 million tonnes in April, which included 5.4 million tonnes of metallurgical-grade alumina.

China’s daily alumina output in May was calculated at 180,000 tonnes, an increase of only 0.1 per cent from 179,800 tonnes during the previous month. But when compared to the same period last year, it was down by 6.54 per cent, although a slower year-on-year decline than 8.61 per cent in the previous month.

According to SMM data, the output of metallurgical-grade alumina in the first five months of 2020 totalled 27.14 million tonnes, down 8.19 per cent over the year.

Capacity reduction in late-April, together with short-term maintenance at alumina refineries in Guangxi and Henan in May, could be attributed to the negligible growth in daily alumina output. Slight increases in alumina prices had prompted some refineries in north China to boost their output, resulting in a month-on-month increase of only 200 tonnes in China’s daily alumina output in May.

As of early June, the operating capacity of metallurgical-grade alumina stood at 65.58 million tonnes per year, learned SMM. It expects the output of metallurgical-grade alumina to come in at 5.44 million tonnes in June, with the daily output hovering at 181,300 tonnes. This means SMM anticipates a month-on-month increase of 1,300 tonnes or 0.72 per cent in China’s daily alumina output in June, even slower than the growth in May.

However, some of the key estimated factors for the anticipated rise in daily output in June include the resumption of capacity from maintenance in May and potential capacity additions at State Power Investment Corporation Zunyi plant.