China’s daily average alumina output drops in March on tight bauxite supplies and higher costs

Shanghai Metals Market survey found a drop of 7,000 tonnes in China’s daily average output of alumina for the month of March. Thus, from 201,000 tonnes, China daily average alumina output in March came in at 194,000 tonnes. Tight bauxite supplies, high costs, maintenance, and equipment upgrading were some of the factors that lowered the average alumina output for March.

About 70.86 million tonnes of capacity on an annualised basis was in operation last month, after declining 3.6 per cent from 73.46 million tonnes in February.

The production of metallurgical-grade alumina, however, expanded 5.07 per cent year-on-year in March to register at 6.02 million tonnes, showed Shanghai Metals Market data.

Chalco Huaxing, Chalco Shanxi, East Hope’s Sanmenxia and Jinzhong branches of alumina refineries reduced their production capacity in March due to tight supplies and higher prices of bauxite. Capacity across Xinfa Huayu, Xiaoyi Xinfa, and Shanxi Fusheng, on the other hand, reduced due to maintenance, while Xiangjiang Wanji felt the impact of equipment upgrading.

However, the average daily alumina output for the month of April is expected to rise by 7,000 tonnes to 201,000 tonnes, as most of the closed capacity has returned by now or will resume this month. Resumption of alumina capacity at Bosai’s plant in Nanchuan Shuijiang and at Luyu Bochuang’s plant will also steadily yield output. The total monthly production is estimated to be at 6.03 million tonnes for April.