HONG KONG, Aug. 21 -- China's Bosai Minerals expects to raise its alumina capacity by 150% to 500,000 mt/year by the second quarter of 2010, from the current 200,000 mt/year, the producer in Sichuan province said Thursday,
Meanwhile, Bosai expects to raise its refined aluminum capacity by 110,000 mt/year to 200,000 mt/year also by Q2 2010, following the completion of a 90,000 mt/year new refined aluminum plant.
In keeping with its growing alumina and refined aluminum capacity, the company has also invested in one 100,000 mt/year semi-aluminum plant, "which is expected to be completed Q2 next year," a source at Bosai said.
The company will be looking to source bauxite from other countries closer to China, despite owning a bauxite mine in South America, as freight costs between South America and China are too high, the Bosai source said. "We need 400,000-500,000 mt/year of bauxite imports for our alumina production."
China imported 7.158 million mt of bauxite in the first half of this year, down 46% year on year, customs figures showed. Indonesia accounted for 69.8% of H1 bauxite imports, and Australia made up 28% of the H1 volume.
Total Chinese refined aluminum consumption in H1 this year was 5.48 million mt, down 11.8% year on year, figures from Beijing Antaike, the state-run metals information provider showed.
A commodity analyst with Minmetals said although the state's support for the local automobile and construction sectors would stimulate H2 refined aluminum demand, "total national aluminum consumption for this year is likely to be less than the 13.08 million consumed in 2008, judging from the fall in H1 demand."
China produced 12.3256 million mt of alumina in January-July this year, down 6.9% year on year, state statistics showed.
Total Chinese refined aluminum output in January-July this year was 6.7456 million mt, down 10.6% year on year.
Total Chinese aluminum product output, including aluminum extrusion, aluminum plate/strip, aluminum alloy and aluminum foil over January-July this year, however, grew 8.8% year on year to 9.3551 million mt.