
According to the Shanghai Metals Market, China's production of metallurgical-grade alumina in March 2023 (31 calendar days) increased by 8.5 per cent month-on-month to total 6.64 million tonnes. In February (28 calendar days), the output stood at 6.12 million tonnes versus 6.37 million tonnes in January. The data indicates that China's domestic alumina production in March stood at the highest in Q1, registering an increase of 4.24 per cent from January (31 calendar days).

In the first three months of 2023, China's domestic metallurgical-grade alumina output totalled 19.13 million tonnes – 5.74 per cent more than 18.092 million tonnes during the corresponding period of the previous year.
On a year-on-year basis, China's alumina output in March '23 edged an increase of 4.7 per cent from 6.342 million tonnes.
Despite the hike in monthly production, China's average daily alumina output in March shrank by 4,700 tonnes from 219,000 tonnes in February to 214,300 tonnes, found SMM. But annually, it stood 4.74 per cent or 9,700 tonnes higher than 204,600 tonnes.
The installed capacity and operating capacity was 100.25 million tonnes and 78.21 million tonnes, respectively, with the operating rate at 78 per cent, down by 3.58 per cent M-o-M from 80.9 per cent. The average operating rate at refineries in Henan and Shanxi fell to 61.5 per cent and 67.7 per cent for poor profits and shortage of ore.
In Hebei, the installed capacity of Wenfeng alumina refinery reached 4.8 million tonnes, but the operating rate in the region averaged 66.2 per cent due to restricted natural gas supply. In Guangxi and Shandong, the operating rate decreased to 87.1 per cent and 90.1 per cent as the capacity was not entirely in operation. Only the operating rate in Guizhou recorded an exception in March by growing to 96.5 per cent, attributed to supply recovery.
The net imports of alumina in March are estimated at around 80,000 tonnes, and the surplus at 158,000 tonnes. The supply surplus extended in March, bringing the total surplus in 3 months of 2023 to 249,000 tonnes.
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