China’s metallurgical-grade alumina production drops 1.4% M-o-M in Aug’22, but output in Shandong and Henan reflects growth

China’s domestic metallurgical-grade alumina production in August 2022 (31 calendar days) edged 1.4 per cent lower month-on-month to total 6.844 million tonnes, found the Shanghai Metals Market. However, on a year-on-year calculation, the August output stood 11.16 per cent higher, with an average daily production at 220,800 tonnes, down by 1.38 per cent from 223,900 tonnes in July.

The operating capacity in August was 80.583 million tonnes, and the operating rate stood at 85 per cent.

In individual provinces like Shandong, domestic alumina production stood at 2.17 million tonnes, up 2.3 per cent month-on-month. In Henan, the output increased as well by 6.9 per cent to stand at 789,000 tonnes. In Shanxi and Guizhou, alumina production fell by 5.5 per cent to 1.698 million tonnes and 1.3 per cent to 461,000 tonnes, respectively. In Chongqing, alumina output plunged by 18.2 per cent month-on-month to 305,000 tonnes, and that in Hebei dropped by 5.1 per cent to 185,000 tonnes.

In Yunnan and Mongolia, alumina output stood stable at 136,000 tonnes and 42,000 tonnes, respectively.

SMM estimates the net imports of alumina in August 2022 to be at 50,000 tonnes. There was a surplus of 79,000 tonnes in August and the accumulated surplus in the first eight months at 878,000 tonnes.

SMM also anticipates the alumina output in September (30 days) to be further down at 6.739 million tonnes. While environmental protection and safety inspections will continue as the 20th National Congress, soon to be held in Beijing, the operating rates of alumina refineries in North China will most likely decline.