China’s June'23 alumina production dips M-o-M to 6.46 million tonnes due to tight supply of raw material

According to the Shanghai Metals Market survey, China’s metallurgical-grade alumina production in June 2023 (30 calendar days) totalled 6.46 million tonnes, down by 1.22 per cent from 6.54 million tonnes in May (31 calendar days). The daily average production in the said month was recorded at 215,000 tonnes, reflecting steady output compared to the earlier month owing to operation resumption in Henan, Guizhou, and Chongqing, along with newly added capacity.

On a year-on-year calculation, China’s alumina output in June stood 4.2 per cent lower due to the closure of alumina capacities in high-cost areas like Shanxi, Henan, and Inner Mongolia. At the end of the month, China’s installed alumina capacity was 100.25 million tonnes, with an operating capacity of 78.58 million tonnes.

The operating rate of alumina in Shanxi was 68.4 per cent, down 4.6 percentage points M-o-M, due to the tight supply of domestic ore. In Henan, the operating rate in June edged a 1.3 per cent fall M-o-M, standing at 63.3 per cent, while that in Guizhou increased by 9.5 percentage points to 84.5 per cent, and in Shandong, up by 2.2 percentage points to 90.4 per cent.

On the other hand, the operating rate in Hebei continued steadily at 90.6 per cent due to new capacity running.

Some more new capacities are expected to start in July, improving the overall output. SMM estimates the daily average output to stand at 213,000 tonnes, with operating capacity at almost 77.66 million tonnes.