China Alumina Output Increased in H1 2013

(China Aluminum Network) According to China Non-ferrous Metals Industry Association (CNIA), China alumina output was 3,830 thousand tons in June, increased 8.66% YOY; in the first half year was 21380 thousand tons, increased 12.18% YOY.

The debugging of new capacity and maintenance of equipments push the increasement of China alumina output. In June, Shanxi Xiaoyi Xinfa Aluminum Factory’s annual capacity of 800 thousand tons alumina project has entered into test run stage. Since last equipment maintenance, Guangxi Huayin Aluminum Factory’s annual capacity has jump to 2,000 thousand tons.

Though alumina price dropped, the decrease of caustic soda and coal price help alumina producer reduce cost. Thus still remains profit margin. In addition to this, the debugging of new aluminum capacity also promotes the demand of alumina. These all result in the increasement of alumina output.

Domestic alumina price rebounded or not and aluminum production will rise or not will decide whether alumina output will keep on rise.

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