SHANGHAI, Feb 15 (SMM) – In January, China's production of alumina (metallurgical grade) registered 6.13 million mt, up 7.4% from a year ago, with average daily output at 198,000 mt, 1,000 mt lower on the month.
Gas installation issues at Chiping Xinfa, rectifications for ultra-low emission at Chinalco Huaxing, and environmental renovation on furnaces at Shanxi refinery affected daily production. Chinalco Shanxi produced in lower gears last month, and environmental curbs in Henan province affected local output.
In Shanxi, Henan, and Inner Mongolia, tight supply of natural gas in heating season also accounted for overall lower production in January.
SMM expects average daily output of alumina in February to rise 2,000 mt from January to 200,000 mt, as some refineries stepped up operation during Chinese New Year after the environmental impact waned. Shandong Xinfa resumed regular production this month and maintenance in the south-west ended by the end of January. This is estimated to generate 5.61 million mt of alumina output in February, up 10.5% from February 2018.
China produced some 2.97 million mt of primary aluminium in January, down 0.5% from January 2018, and down 0.7% from December. By the end of January, domestic primary aluminium capacity under operation stood at an annualised 34.96 million mt, down 270,000 mt/year from December.
Despite new capacity in Inner Mongolia’s Chuangyuan and Guyang smelters, capacity cuts at Shaanxi Hengkang, Shandong Huayu, Shanxi Huasheng, and Shanxi Huaze continued to lower operating capacity last month.
For February, SMM expects fewer working days to lower China’s output of primary aluminium to 2.7 million mt, down 1.1% from a year earlier. By the end of February, domestic primary aluminium capacity under operation is forecasted at an annualised 35.14 million mt.
Unfulfilled capacity in 2018, as well as new and replacement capacity in Inner Mongolia, Guangxi, Shaanxi and Yunnan will continue to enter operation in February.
