Small Alumina Producers in Henan Switch to Aluminum Hydroxide Production

SHANGHAI, Dec. 15 (SMM) -- According to a recent SMM survey, alumina producers with capacity below 100,000 mt in Henan Province gradually switch to production of aluminum hydroxide, since falling alumina prices reduce their profit margins while aluminum hydroxide prices remain stable.

According to SMM statistics, non-CHALCO alumina prices remained between RMB 2,680-2,750/mt in Henan during December, down by nearly RMB 200/mt from September, while CHALCO also cut its alumina prices from RMB 3,000/mt, to RMB 2,800/mt. In contrast, aluminum hydroxide prices were relatively stable, with prices between RMB 1,800-1,850/mt in Henan.

According to the SMM study, aluminum hydroxide and alumina production processes are basically the same, with the difference only found in the final stage of processing alumina, since alumina is formed by the dehydration and decomposition reaction of aluminum hydroxide in the context of high-temperature calcination, and alumina products with a certain physical and chemical properties are available from the process of crystalline transition. The similar production process also provides the conditions for small alumina producers to switch to the production of aluminum hydroxide.