China’s alumina production in Dec’23 reflects a 5.7% growth, bringing annual output close to 80 million tonnes

The Shanghai Metals Market has revealed the world’s largest alumina producer’s output in December 2023, and with that comes China’s total production figure for the entire year. 

As per the data shown, China’s metallurgical-grade alumina output in December 2023 (31 days) stood at 6.795 million tonnes, slightly up by 0.74 per cent from 6.745 million tonnes in November and 5.7 per cent higher than 6.43 million tonnes in December 2022. However, the country’s daily average output fell month-on-month in December by 2.49 per cent, from 224,800 tonnes to 219,200 tonnes.

According to SMM data, China’s total alumina production in 2023 reached 79.8 million tonnes, leveraging the operating capacity of 80.04 million tonnes at the end of December. The installed capacity at the end of the year was 100 million tonnes, found SMM. 

Analysis of China’s daily output drop

Shanghai Metals Market observed that operating rates of alumina refineries across major Chinese provinces decreased month-on-month. For instance, the operating rate in Shanxi stood at 69.2 per cent, reflecting a 9.2 per cent M-o-M fall, attributed to mine inspection and control policies and tight raw material supply. 

The operating rate in Henan was 61.9 per cent in December, down by 1.6 per cent M-o-M, as some alumina refineries limited roasting capacity due to local heavy pollution weather warnings and later resumed production in early January as the warnings were lifted. 

In Guizhou and Hebei, on the other hand, operating rates increased by 2.1 per cent and 6.2 per cent M-o-M to 84.5 per cent and 87.5 per cent as some refineries resumed production, offsetting some output cuts due to cost issues, tight ore supply, and maintenance activities. In Shandong, the operating rate was the same as in November at 93.6 per cent. 

Forecast for January

According to SMM, refineries in Shanxi and Henan are less likely to enhance production due to the continued ore shortage. Hence, the operating rate will continue to remain low. The roasting capacities in Shandong and Henan, which were previously subject to environmental protection policies, have now resumed production. Overall, the daily average production in January is estimated to slightly grow M-o-M to 220,500 tonnes per day, with the total operating capacity of 80.50 million tonnes.