Environmental upgrading, maintenance keeps Apr alumina output below expectations

SHANGHAI, May 8 (SMM) – China's production of metallurgical-grade alumina in April expanded 0.1% on the year to 5.81 million mt, but failed to meet SMM expectations as environmental upgrading, maintenance, and losses affected the release of capacity, an SMM survey showed on Wednesday May 8.  

Daily alumina output averaged 194,000 mt in April, flat from March. This kept output in January-April 5.71% higher on the year, to stand at 23.59 million mt. About 70.64 million mt of capacity on an annualised basis were in operation last month. 

In April, equipment upgrading for environmental standards affected production at Shandong Weiqiao. Product quality at Bosai Group’s Nanchuan Shuijiang refinery remained unstable, and this dragged on output. East Hope (Sanmenxia) Aluminium lowered its operating capacity to 2.1 million mt, and losses drove Chinalco Mining to cut output by 1 million mt. SMM also learned that Shanxi Fusheng and Inner Mongolia Xinwang suspended part of their capacity for maintenance. 

Resumption from environmental upgrading and a potential rebound in capacity at Shanxi Huaxing is expected to bolster the average daily alumina output by 5,000 mt from April, to 199,000 mt in May. This is estimated to yield output of 6.17 million mt for the month, up 1.86% from May 2018.

Guangxi Xinfa closed one more production line, with a capacity of 600,000 mt, in May, and this will keep its operating capacity between 1.8-1.9 million mt.