Global alumina market witnessed significant developments in 2022

The Chinese alumina production capacity was approximately 76.6 million tonnes as of November 2022. AlCircle’s latest report ‘Global Aluminium Industry Outlook 2023’ states that the nation's alumina refineries used about 79 per cent of their capacity in November 2022 compared to 81 per cent in October 2022. Higher Covid infection rates in China during that time, production restrictions due to environmental issues, and lower operating rates contributed to the reduction. China is anticipated to have produced 6.7 million tonnes of alumina in November 2022, out of which 95 per cent of which was metallurgical quality.

Australia is still the world's largest alumina exporter and the second-largest producer. The nation's production was projected to have increased from 20.1 million tonnes in 2021–2022 to around 20.4 million tonnes in 2022–2023. According to a government report, Australia is expected to produce 20.9 million tonnes of alumina in 2023–2024.  The alumina supply decreased by 7.8 per cent for the quarter ending in September 2022 compared to the same period in 2021, primarily because of planned maintenance at a few refineries and problems with equipment stability.

The following is a list of recent developments in the alumina sector:

China

• New alumina capacity was put into operation aggressively in 2022. Approximately 10.3 million tonnes of new alumina capacity was commissioned in 2022, exacerbating the supply surplus.
• China Aluminium Company’s venture in Indonesia – Mempawah alumina refinery is expected to come online by 2024

India

• The state of Odisha has approved the Adani group to set up a 4 million tonnes per annum alumina refinery project.
• The joint venture of Ras-Al Khaimah Investment Authority (RAKIA) and Penna Group of Companies, Anrak Aluminium Limited (AAL), has commissioned the 1.5 million tonne alumina refinery in Andhra Pradesh, India.

Australia

• Alumina production at Worsley Alumina Refinery is set to go beyond its nameplate capacity, enabled by better production initiatives.
• South32, a metal mining company based in Australia, has entered into a 10-year agreement with Aluminium Bahrain B.S.C. (Alba) for the supply of alumina. The agreement is set to begin in 2023.

Europe

• Glencore has entered into an agreement with Press Metal Bintulu, Malaysia, for a 10-year-long supply of alumina and an offtake of aluminium.
• Glencore, in light of the geopolitical conflict in Europe, has entered into an agreement to supply alumina to Aluminium Dunkerque in return for the smelter to supply aluminium.

Guinea

• Compagnie des Bauxites de Guinée (CBG) backs the alumina refinery push in Guinea by the current military junta’s focus on improving the domestic bauxite industry.

Vietnam

• Vinacomin has presented a proposal to the Vietnam Government to increase the company’s alumina production capacity by 800,000 tonnes.

Russia

• Russia is considering building an alumina refinery to cut its dependency on China. Russia secures 65 per cent of its alumina requirements through imports, mainly from China.

The re-opening of the Chinese economy may positively influence the demand for aluminium in the country, thereby influencing the demand for alumina in the short term. The global alumina supply will be driven by increased production from China, with the commissioning of new refining capacities in 2022. Indonesia's ban will impact the alumina price in the short-term bauxite imports until the companies firm up their supply positions. The slowing global economic growth and demand for primary aluminium in the short term will also impact the alumina price. 

The developments continue after the above points, while there is much more to know about the alumina sector and its latest trends, production and country-wise consumption. To get your copy now, click here.