According to SMM data, China's metallurgical-grade alumina production in May 2025 (31 days) increased by 2.66 per cent M-o-M and 4.06 per cent Y-o-Y. As of month-end May, China's existing capacity for metallurgical-grade alumina stood at approximately 110.82 million tonnes, with actual operating capacity declining by 0.46 per cent M-o-M and an operating rate of 77.3 per cent.
Operating capacities of domestic alumina refineries varied in terms of increases and decreases during the month. Due to an overall decline in bauxite ore prices and a significant rebound in alumina prices, the profitability of alumina enterprises improved, leading to partial resumption of production at facilities that had undergone maintenance and production cuts earlier. Meanwhile, some new enterprises conducted maintenance and production cuts. Overall, China's alumina operating capacity declined slightly M-o-M in May.
By region
In May, multiple alumina enterprises in southern Guizhou and Guangxi regions underwent maintenance and production cuts, resulting in a decline in operating capacity and operating rates that fell by 10.2 and 1.3 percentage points M-o-M, respectively.
In May, the production decline caused by earlier maintenance and production cuts in Shandong, Shanxi, and Henan regions was further reflected. Meanwhile, following improved profitability, some alumina capacities resumed production in May. Overall, the alumina operating rates in Shandong and Henan regions declined by 4.8 and 2.9 percentage points M-o-M, respectively, while the alumina operating rate in Shanxi region rebounded by 1.4 percentage points M-o-M.
Next month's forecast: As of May 30, according to SMM's daily cost-profit model calculations, the average profitability of the alumina industry exceeded 400 yuan/mt. It is expected that alumina capacities will gradually resume production and new capacities will be further released in June. Overall, China's operating capacity for domestic metallurgical alumina is expected to rebound to approximately 87.95 million mt/year in June.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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