China’s Alumina Output Grows to Nearly 3.5 Mln Mt in March, Further Rise Is Expected

 

The 3.5 million mt in alumina output in March is equivalent to an annualized capacity of 41.17 million mt/yr. The number was 3.11 million mt in March last year, with annualized capacity reported at 36.63 million mt/yr. This indicates a 4.54 million mt/yr increase in operating capacity in March this year, a sign of rising alumina supply in China.  

 

Chinese alumina producers using imported bauxite, including Chalco, cut production against the Indonesian government’s export restrictions on bauxite in 2012. Nevertheless, alumina supply in China has shown no signs of tight supply, due largely to increased supply of imported alumina and commissioning of new alumina capacity. 

   

Growing output at newly-built alumina plants and resumption of idled alumina capacity are contributing to the notable rebound in existing alumina output. SMM believes there is still room for domestic alumina supply to grow given the continuous increase in new alumina capacity in China.