China’s Sept'23 alumina output affected by 4% due to bauxite shortage and maintenance work

According to the Shanghai Metals Market survey, China’s metallurgical-grade alumina production in September 2023 (30 days) recorded a decline of 4.06 per cent month-on-month to 6.732 million tonnes. Daily output also registered a fall from the previous month to stand at 224,400 tonnes, unlike the earlier estimation of 229,000 tonnes for the said month.

Part production shutdown in Guangxi because of the bauxite supply shortage was one of the reasons for the output decline in September. Maintenance at some refineries in Shandong and Shanxi also affected operating rates, leading to lower daily production.

In Shanxi, the operating rate in September was 72.8 per cent, down by 0.4 per cent M-o-M, owing to line maintenance at some refineries. However, a new capacity in Shanxi with 500,000 tonnes reached full production in September.

In Shandong, the operating rate fell from 94.4 per cent in August to 90.9 per cent in September, as 1 million tonnes of annual capacity was affected by maintenance work.

In Henan, on the other hand, the operating rate rose 3.8 per cent M-o-M to reach 72.7 per cent, supported by imported bauxite supply. In Hebei as well, the operating rate during September grew 4.2 per cent M-o-M to reach 87.5 per cent as some refineries resumed production after maintenance. In Guizhou, the operating rate stood steady at 81.6 per cent during September.

However, on a year-on-year basis, China’s September alumina output stood slightly higher by 0.4 per cent. China’s installed capacity was 100 million tonnes at the end of September, with an operating capacity of 8.19 million tonnes. China’s cumulative alumina production during January-September 2023 was 59.422 million tonnes, up by 2 per cent Y-o-Y.

SMM projects daily average alumina production to rebound to 227,000 tonnes in October 2023, and the total operating capacity to stand at 83.02 million tonnes, up by 5.6 per cent M-o-M. Refineries in Shanxi, which were under maintenance in September, resumed operations in early October.

Source: SMM