SHANGHAI, Jul. 25 (SMM) – China’s alumina output hit 3.83 million mt in June, up 8.66% YoY, and 21.38 million mt during H1, also up 12.18%, according to the China Nonferrous Metals Industry Association (CNIA).
Commissioning of new capacity and completion of facility maintenance pushed China’s alumina output higher. Shanxi Xinfa Xiaoyi Alumina Plant’s 800,000 mt/yr alumina project entered trial operations in June. Guangxi Tiandong Jinxin Chemical’s capacity increased to 1 million mt/yr in June. Guangxi Huayin Aluminum’s capacity also grew to 2 million mt/yr following earlier facility maintenance.
Despite falling alumina prices, the decline in caustic soda and coal prices helped reduce production costs at alumina producers. As such, there remains room for profits. Besides, the commissioning of new aluminum capacity boosted alumina demand. These contributed to growing alumina output.
Whether alumina output will continue to rise depends on whether domestic alumina prices will rebound and whether aluminum output will continue to grow.