China’s strong domestic alumina demand boosts production and reduces imports

China is enjoying a robust demand for alumina in the domestic market that has pushed up the country’s output by 8.7% to a record high of 4.71 million tons this March reducing its reliance on alumina imports which fell 42.1% from last year to 218,000 tons.

The domestic alumina is more attractive due to its lower price compared to the imported kind. The average alumina ex-works Henan and Shanxi was noted at RMB 2,673 yuan/ton and 2,597 yuan/ton respectively while imported alumina traded at 2,670 yuan/ton at the Port of Lianyungang.

Driven by the encouraging demand in the domestic front, alumina refineries in the country are planning to expand their operations.

Weiqiao Pioneering’s 1 million-tpy Phase 1 alumina capacity in Indonesia will enter the trade market this year, while the Phase II is expected to become operational by H2 2016.

In Q4 2015, Shanxi Senze Energy Technology’s 600,000-tpy project will become functional while the 800,000-tpy capacity at Guizhou Huajin Aluminum’s Phase 1 project is expected to go online by the end of April.

Chongqing Dingtai Tuoyuan Alumina Development and Chalco (Chongqing) both planned to resume production, probably in H2 2015.