May 2024: China’s alumina production continues to grow annually nearing 7 million tonnes

According to the Shanghai Metals Market survey, China's metallurgical-grade alumina production in May 2024 (31 calendar days) recorded a monthly hike of 4.64 per cent, reaching 6.989 million tonnes versus 6.679 million tonnes.

The daily average output stood at 233,000 tonnes per day, reflecting an increase of 4.67 per cent from 222,600 tonnes in April 2024.

The accumulated production of China's metallurgical-grade alumina from January to May 2024 amounted to 33.451 million tonnes, up 3.42 per cent Y-o-Y.

At the end of May 2024, China's alumina capacity was 100 million tonnes, with an operating capacity of 82.29 million tonnes and an operating rate of 82.3 per cent. In April 2024, China's operating capacity was 81.27 million tonnes, with an average operating rate of 81.3 per cent.

Alumina production by region

The alumina operating rate in Shanxi during May 2024 was 75.8 per cent, up by 2.9 per cent M-o-M due to the resumption of production at those mid-sized refineries that reduced output in March and April due to insufficient ore supply. At the end of May, Shanxi's annual aluminium capacity was 550,000 tonnes.

Additionally, an alumina refinery in Lvliang resumed full production in May, reaching 450,000 tonnes, as domestic captive mines resumed. The operating rate in Henan also rose in May by about 3 per cent to 66.1 per cent, attributed to the resumption of a local alumina refinery as ore supply pressure eased. With the resumption of a refinery, Henan's annual alumina-producing capacity reached approximately 500,000 tonnes.

Hebei also contributed to the increase in May alumina production, with the operating rate growing 7 per cent M-o-M to 95.7 per cent. In Guangxi, operating rate in May grew 2.6 per cent from April to 88.4 per cent, backed up a refinery resuming production and achieving a capacity of 500,000 tonnes.

In contrast, the operating rate in Guizhou decreased by 2.6 per cent from the previous month to 80.8 per cent, attributed to a refinery undergoing equipment maintenance in early May that affected the capacity of about 400,000 tonnes.

Forecast for June

According to SMM survey, some bauxite mines in Shanxi and Henan resumed production last month, which helped some refineries resume operations that were closed due to inadequate raw material supply. An alumina refinery in Shanxi restored its operating capacity to full production by the end of May. A refinery in Henan expanded production by 300,000 tonnes in late May due to the supplementation of imported ores.

In Guizhou, on the other hand, about 300,000 tonnes of capacity is yet to resume operations.

Taking all these factors into consideration, SMM predicts China's daily average alumina production in June 2024 to stand at 229,500 tonnes per day, with a total operating capacity of 83.76 million tonnes, up 6.6 per cent Y-o-Y.