
According to the Shanghai Metals Market survey, metallurgical grade alumina production in China during May 2023 (31 calendar days) amounted to 6.682 million tonnes, up 2.17 per cent from 6.54 million tonnes in April (30 calendar days). But the average daily output decreased month-on-month from 218,000 tonnes to 216,000 tonnes in May, although the number of production days in May was more than in April. The dip in daily output was due to the slow-down of new capacity growth and concentrated maintenance.

China’s alumina production in May also fell 3.9 per cent on a year-on-year basis, citing the shut-down of some alumina facilities or lower operating rates due to poor profitability for high-cost alumina in Shanxi, Henan, Inner Mongolia, and other regions.
As of the end of May, China’s installed alumina production capacity was 100.25 million tonnes, and operating capacity was 79.1 million tonnes.
In Shanxi, the operating rate at alumina refineries increased by 3.6 percentage point M-o-M to 73 per cent, notwithstanding the alumina price hike. In Henan, the operating rate remained low at 64.6 per cent, and in Guizhou, it plunged by 18.1 percentage point to 75 per cent.
In Hebei, on the other hand, the start-up of new capacity caused the operating rate to surge from 76 per cent in April to 90.6 per cent in May, which rose operating capacity to 43.5 million tonnes per year. In Guangxi as well, the operating rate in May rose from 87 per cent to 90.6 per cent, but dropped 3.1 percentage point M-o-M to 88.2 per cent in Shandong.
SMM expects the daily average output in June to reach 225,000 tonnes but the monthly output to 6.75 million tonnes, with new capacities coming on-stream in Shandong, Guangxi, and Hebei.
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