China’s alumina production in 2019 down by 2.47% YoY due to capacity cut and output suspension

According to Shanghai Metals Market survey, China in December 2019 produced 5.87 million tonnes of alumina, with metallurgical-grade materials accounting for 5.62 million tonnes. With this, the country’s total alumina production in 2019 came in at 70.42 million tonnes, down 2.47 per cent from the year earlier.

Last month, the production of metallurgical-grade alumina averaged 181,000 tonnes per day, down 9.01 per cent year on year and 0.26 per cent month on month as Luoyang Wanji cuts its annual operation capacity to 800,000 tonnes.

Also, the alumina refineries that reduced or suspended output in November due to tight bauxite supply and environmental woes did not recover in December, resulting in weaker production. Jingxi Tiangui project, on the other hand, fails to see production ramp up as was expected.

As of early January, alumina capacity in operation in China reduced to 66.19 million tonnes on a yearly basis, as Guangxi Xinfa and Xinghua Technology curtailed production.

Average daily production is shrinking to 180,000 tonnes and thus, the production of metallurgical-grade alumina likely to dip to 5.58 million tonnes in January. Jingxi Tiangui, however, is most likely help limit the decline.