SMM Expects China Alumina Output to fall in June

China’s alumina output rose 17.1% year-on-year to 5.68 million tonnes in May, and the daily average output dropped 3.5% month-on-month to 183,000 tonnes, SMM statistics showed.

Alumina prices fell below costs. This, combined with environmental issue in Shanxi and Guizhou, prompted many alumina producers to cut output or entered maintenance. Shanxi Xiaoyi Taixing Aluminum Magnesium shifted to production of aluminum hydroxide. East Hope Jinzhong Chemical put 1 million tonnes of capacity under maintenance. Chalco (Shanxi) slashed capacity by 800,000-tpy, and Chalco (Zhongzhou) cut capacity by 350,000-tpy.

Tianyuan Chemical put all production lines under maintenance. Henan Wanji cut capacity by 400,000-tpy. Aokaida Chemical put lines under maintenance in turn. Shanxi Huaqing Aluminum closed 70,000-tpy capacity for environmental reason. Guizhou Galuminium began maintenance since May 15 due to environmental issue and Big Data Expo held during May 26-29.    

In June, Jinzhong Chemical has resumed production, and Tianyuan Chemical will restart production in two phases, with the first phase already completed. Alumina production in Guizhou will be affected by tight supply of bauxite and lime. Henan Wanji has not resumed production.

SMM expects China’s alumina output to fall from May to 5.59 million tonnes in June, and the daily average output will be 186,000 tonnes, higher than in May, but down from April.

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