
According to the Shanghai Metals Market, China produced 6.68 million tonnes of metallurgical-grade alumina in October 2022 (31 calendar days), with daily output of 215,400 tonnes. The monthly production stood 0.61 per cent down M-o-M but 10.3 per cent more over the year. At the end of October, the operating capacity was 78.61 million tonnes, with operating rates at 81.1 per cent, found SMM.

The decline in monthly output during October touched upon some of the major Chinese cities, whilst a few saw an increase in production. In Shandong, alumina output during October was 2.16 million tonnes, reflecting a drop of 2.41 per cent M-o-M; in Shanxi and Henan, the production of the ore was 1.58 million tonnes and 721,000 tonnes, respectively, after losing 0.62 per cent and 7.43 per cent of output from the previous month. Alumina production in Chongqing and Hebei also edged 3.03 per cent and 8.33 per cent lower, amounting to 320,000 tonnes and 165,000 tonnes, respectively.
Only in Guangxi and Guizhou, alumina output stood 4.78 per cent and 7.69 per cent higher, respectively, at 1.09 million tonnes and 465,000 tonnes in October 2022.
The net import of alumina in October is estimated at 100,000 tonnes, with a surplus of 205,000 tonnes. From January to October, a surplus is likely to total 1.62 million tonnes, following capacity expansion at Luyu Bochuang and Lubei Chemical by 1 million tonnes at the end of September. Alumina surplus is expected to expand further with declined demand due to lower aluminium production and slower resumption in Yunnan.
By the end of October, the average profit of China’s alumina refineries was below RMB 50 per tonne. Nearly 80 per cent of the enterprises were oscillating at the break-even point, especially the companies in Shanxi, Henan, and Guizhou. Due to heavy operating pressure and high costs, many enterprises are contemplating reducing or stopping production. So far this year, 2.8 million tonnes of alumina capacity has already been eliminated. But at the same time, there are 10.5 million tonnes of new capacity in operation.
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