Environmental upgrading, maintenance and losses kept China¡¯s April alumina output away from SMM¡¯s expectations

China’s production of metallurgical-grade alumina in April failed to meet Shanghai Metals Market expectations despite expanding 0.1 per cent year on year to peg at 5.81 million tonnes, found SMM survey on Wednesday, May 8. Environmental upgrading, maintenance, and losses were some of the factors that hindered the release of capacity in April, according to SMM.

Daily alumina output averaged 194,000 tonnes in April, flat from March and down 7,000 tonnes from February. However, the total output during January-April still stood higher by 5.71 per cent year on year, coming in at 23.59 million tonnes. About 70.64 million tonnes of capacity on an annualised basis were in operation last month, the same as that in March.

In April, equipment upgrading for environmental standards affected production at Shandong Weiqiao. But the production quality at Bosai Group’s Nanchuan Shuijiang refinery remained stable, and that in turn dragged on the output.

East Hope (Sanmenxia) Aluminium also lowered its operating capacity to 2.1 million tonnes and Chinalco Mining reduced output by 1 million tonnes. Shanxi Fusheng, as well as Inner Mongolia Xinwang suspended part of their capacity for maintenance.

In May, the average daily output is expected to be risen by 5,000 tonnes to stand at 199,000 tonnes, backed on resumption from environmental upgrading and a potential rebound in capacity at Shanxi Huaxing. This will likely yield output of 6.17 million tonnes for the month, up 1.86 per cent year on year.

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