SHANGHAI, Oct 11 (SMM) – China produced 5.95 million mt of alumina in September, up 3.0% from a year ago. Overall output in January-September came in at 52.11 million mt, up 1.9% from the corresponding period last year, SMM data showed.
Daily output averaged 198,000 mt, up 3.8% from August as higher profits encouraged southwestern refineries to raise production. Refineries in Shanxi and Henan provinces gradually resumed operation from cutbacks or maintenance, and this also grew the overall production.
SMM expects daily output in October to stand 2% greater than September, as production resumes at State Power Investment Corp Shanxi Aluminum, and as new capacity commissions at Shanxi Xiaoyi Alumina Refinery and Eastern Hope Jinzhong Aluminum. October's output is expected to come in at 6.27 million mt with daily output averaging 202,000 mt.
China produced 3 million mt of primary aluminium in September, up 2.9% year on year. This lowered overall output in January-September 1.3% from the corresponding period last year, standing at 27.05 million mt, SMM data showed.
There is about 37.38 million mt of primary aluminium capacity in operation across the country as of the end of September and about 4.66 million mt of idle capacity. Operating rates last month came in at 88.9%, down 0.3 percentage point from August as higher costs grew losses.
Some capacities with high costs in Shaanxi and Henan provinces shut permanently and this shrank operating volumes. Commissioning of new capacities stayed at a slow pace, and this is expected to continue through next month.
SMM estimates October's output to come in at 3.1 million mt, up 3% from the same period last year. However, the annual change for the January-October period will remain to be in a contraction, of 0.9%.
