SHANGHAI, Oct. 10 (SMM) -
Alumina According to the China Nonferrous Metals Industry Association (CNIA), China produced 3.22 million mt of alumina in August, up 8.10% YoY. YTD output from January through August was 25.77 million mt, up 10.57% YoY. SMM attributes the year-on-year growth in alumina output to new alumina capacity and rising demand for alumina following the commissioning of new aluminum capacity in Xinjiang.
SMM’s statistics show seven new alumina capacity projects have been put into operation in China during the first eight months of this year, with a total capacity of 4 million mt. Although domestic alumina smelters using imported ore have cut output since June due to tight raw material supply, the lower output at existing facilities has now been offset by new capacity, resulting in YoY growth in alumina output.
Aluminum According to CNIA, China produced approximately 1.75 million mt of primary aluminum in August, up 9.3% YoY and 4.7% MoM. Primary aluminum capacity in operation during August was 20.65 million mt/yr, up 930,000 mt MoM. Many aluminum producers brought new capacity online during July, but the annualized operating capacity still fell shown by CNIA data. Primary aluminum capacity was up 930,000 mt on a monthly basis during August after 100,000 mt/yr in new capacity at Chalco Fushun Aluminum, 140,000 mt/yr in new capacity at Yunnan Aluminum, and 50,000 mt/yr in new capacity at Xinjiang Qiya Aluminum & Power all came online.
Aluminum Semis According to CNIA, China produced 2.62 million mt in aluminum semis during August, up 29.68% YoY and 5.74% MoM, and this continuous growth in output on a monthly basis surprised markets. SMM’s most recent survey revealed operating rates at aluminum extrusion producers in China during August were 56.47%, down 1.66% MoM. The average operating rate at aluminum plate, sheet, strip and foil producers was 54.30%, down 3.20% MoM. Falling operating rates at the surveyed aluminum semis producers and the fact that only a few new aluminum processing projects entered production provide no support for month-on-month output growth in August.