China is expected to achieve alumina supply self-sufficiency in 2010

The acting general manager of China Futures Industrial Products Department-Yang Ying Hui said that China was expected to achieve alumina supply self-sufficiency within two years. He said on China First Renewable Aluminum Meeting that China's alumina industry has undergone tremendous changes since 2006.

She said, "China's alumina supply mainly relied on imports, and aluminum was in the dominant position in domestic market; but now the situation has changed, imports gradually reduced, and other alumina producer shared the market with China aluminum. Under this rate, China is expected to achieve self-sufficiency within two years or even exceeded demand".

She said China¡¯s alumina output in March 2003 was 1.53 million tons, "according to the data, we predicted that the alumina output will reach 20 million tons this year". She added, "Based on the current ongoing expansion plans of manufacturers, China's alumina production capacity will reach 2800-3000 tons/year recently, and 1800-2000/year in 2007.

¡¡Reportedly, in Henan, seven manufacturers are expanding production capacity, some of which has completed expansion in 2006. Four major manufacturers in Shandong and six manufacturers in shanxi and five manufacturers in other provinces are all undergoing expansion plans, and some are drawing to a close.

Alumina imports decreased, but prices still have good support

She said that with the enhancement of domestic output and productivity, China's alumina imports have declined markedly. In first quarter of this year, China's net import volume is 143 million tons, falling significantly over the same period of last year. In 2006, annual net import volume is 690 million tons. In March 2007, alumina import was only 350,000 tons.

She stressed that despite the slowdown in Chinese import demand, but alumina prices remained stable.

¡¡She said, "Because ingots production and productivity are increasing, the alumina prices continue to be supported by domestic demand. China still relies mainly on bauxite imports, and bauxite prices stay high. "

She said that China's aluminum production had remained strong growth momentum since 2006. In the first quarter of 2007, total output is 2.86 million tons, increase 40% over the same period last year. She added, "China's aluminum output growth is the fastest in all the non-ferrous metals".

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