SHANGHAI, Jun 4 (SMM) – China's production of metallurgical-grade alumina in May decreased 1.39% on the year to 5.97 million mt, as maintenance, technical upgrade, and environmental probes affected output, SMM data showed on Tuesday June 4. 

Daily alumina output averaged 193,000 mt in May, down 1,000 mt from April. About 70.3 million mt of capacity on an annualised basis were in operation last month, down 336,000 mt from April and down 990,600 mt from April 2018. Output in January-May remained 4.19% higher on the year, standing at 29.56 million mt. 

Last month, maintenance at Guangxi Huayin and suspension for the technical upgrade at East Hope's Lingshi refinery affected their production. Guangxi Xinfa halted a production line. Jiaokou Xinfa and Xiaoyi Huaqing were ordered to shut for environmental rectifications. 

Operating capacity at Xinghua Technology started to recover from a low of 350,000 mt in May. Recovery at Guizhou Huafei, Luyu Bochuang, Bosai Group's Shuijiang project continued to contribute to higher output. SMM also learned that Shandong Weiqiao and Chinalco Huaxing further hiked their operating capacity from April. 

Production at Jiaokou Xinfa will grind to halt in June, and this may lower domestic output of alumina by 3.97% on the year, to 5.73 million mt in June. Annualised operating capacity in June is expected to decrease by 2.88 million mt on the year and by 600,900 mt on the month, standing at 69.7 million mt. 

This month, production at Luyu Bochuang and Bosai Group's Shuijiang project will continue to ramp up after resumption. Guangxi Huayin is set to end maintenance, and Xinghua Technology will recover full operation. Refineries of Chinalco Huaixng, Chinalco Mining, Guangxi Xinfa, and East Hope Sanmenxia will expand their operating capacity.