China’s June alumina production grows by nearly 2% from a month ago to 5.71 million tonnes

According to Shanghai Metals Market data, China’s alumina production stood at 5.71 million tonnes in June, including 5.5 million tonnes of metallurgical-grade alumina. The daily output came in at 183,000 tonnes, 1.82 per cent higher from a month ago but down by 4.57 per cent on the year.

Accumulated production of metallurgical-grade alumina during the first half of the year (January-June) totalled 32.64 million tonnes, 7.6 per cent lower from the same period last year.

The moderate rise in alumina prices led refineries in north China to lift their capacity in operation month-on-month in June, countervailing the production cut at some of the refineries.

As of early July, the operating capacity of metallurgical-grade alumina stood at 66.9 million tonnes per year. SMM expects the output of metallurgical-grade alumina at 5.54 million tonnes, with daily production to edge higher on the month to 184,700 tonnes.

Chinalco Huaxing and Shanxi New Materials have started adopting flexible production since end-June, while some refineries in south-west China have planned to put their roasting furnaces into maintenance in July. Several alumina refineries under SPIC Shanxi and Henan have resumed operations as well or are planning to restart work, which is expected to offset the production loss. SPIC Wuchuan is likely to begin mass production of alumina products in July. Besides, the continued rally in alumina prices may trigger more capacity resumption.