China¡¯s alumina production during Jan-May rose 4.29% YoY despite a decline in output for May

Shanghai Metals Market data shows that maintenance, technical upgrade, and environmental probes at alumina refineries in China have affected the metallurgical-grade alumina production for the month of May. The output decreased 1.39 per cent year on year to 5.97 million tonnes, found the data.

Daily alumina output in May averaged at 193,000 tonnes, down 1,000 tonnes from April. About 70.3 million tonnes of capacity on an annualised basis were in operation, down 336,000 tonnes from April 2019 and 990,600 tonnes from April 2018. However, output during January-May remained 4.29 per cent higher on the year and came in at 29.56 million tonnes.

Maintenance at Guangxi Huayin and suspension for the technical upgrade at East Hope’s Lingshi refinery in May 2019 weighed on the production. While Guangxi Xinfa was asked to halt a production line, Jiaokou Xinfa and Xiaoyi Huaqing were ordered to shut for environmental rectifications.

Operating capacity at Xinghua Technology, on the other hand, recommenced at 350,000 tonnes in May, while the production capacity at Guizhou Huafei, Luyu Bochuang, and Bosai Group's Shuijiang project recovered that lifted the alumina output in China during Jan-May. SMM learned Shandong Weiqiao and Chinalco Huaxing further hiked their operating capacities from April.

Meanwhile, production at Jiaokou Xinfa will grind to halt in June, which in turn may lower domestic output by 3.97 per cent to 5.73 million tonnes on the year. Annualised operating capacity in June is expected to stand at 69.7 million tonnes, down 2.88 million tonnes from the same period last year and 600,900 tonnes from May.

But production at Luyu Bochuang and Bosai Group's Shuijiang project is expected to ramp up after resumption, while Guangxi Huayin is set to end maintenance and Xinghua Technology to recover full production. Refineries of Chinalco Huaixng, Chinalco Mining, Guangxi Xinfa, and East Hope Sanmenxia are also likely to expand their operating capacities.

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