SMM, July 8:
According to SMM data, 3.004 million tons of electrolytic aluminum were produced in China in June 2020 (30 days), an increase of 2.42 per cent over the same period last year. By the end of June, the national operating capacity of electrolytic aluminum was 36.76 million tons / year, the completed capacity was 41.23 million tons / year, and the operating rate of national electrolytic aluminum enterprises was 89 percent. The overall operating rate was 0.3 percent higher than that at the end of May 2020. By the end of June, the operating capacity of domestic electrolytic aluminum has increased by 180000 tons / year compared with the end of May. Since June, under the stimulation of high profits, the domestic electrolytic aluminum production capacity has been gradually put into operation, and the monthly output growth rate has accelerated compared with the same period last year.
In the first half of 2020, the cumulative output of domestic electrolytic aluminum was 18.009 million tons, an increase of 2.93% over the same period last year; the cumulative consumption of domestic electrolytic aluminum was 17.69 million tons, and the cumulative year-on-year decline rapidly narrowed to 0.18%. Electrolytic aluminum continued to go to the warehouse in June, mainly due to the temperature at the supply end and the rise in demand for aluminum downstream. In July, the new capacity of electrolytic aluminum in Yunnan, Inner Mongolia and other places will continue to increase, and net imports are expected to increase slightly compared with June. SMM estimates that domestic electrolytic aluminum production in July (31 days) is 3.12 million tons, an increase of 1.79% over the same period last year, and the monthly consumption growth rate will narrow around 6.15% as supply rises and the margin of demand weakens.
According to SMM data, China produced 5.709 million tons of alumina in June (30 days), of which metallurgical grade alumina was 5.499 million tons, and the average daily output of metallurgical grade was 183000 tons, an increase of 1.82% from the previous month and a decrease of 4.57% from the same period last year. In the first half of the year, China's cumulative metallurgical grade alumina output was 32.641 million tons, 7.6% lower than the same period last In the context of the mild rise in alumina prices during the month, the annual operating capacity of alumina in the northern region increased slightly compared with May, and the production reduction of individual alumina plants at the end of the month did not affect the output of that month.
As of the first ten days of July, the operating capacity of metallurgical grade alumina is 66.9 million tons, and the output of metallurgical grade alumina is expected to be 5.54 million tons in July (31 days), with the average daily output rising slightly to 184700 tons. On the whole, China's alumina market is still a month of increasing and reducing production in July. In terms of production reduction, the new materials of Chinalco Huaxing and Shanxi began to produce flexibly at the end of the month, and some alumina plants in southwest China had a roaster maintenance plan in July. In terms of increasing production, Guodian's Shanxi and Henan alumina plants have resumed or plan to resume production. Guodian Investment Sichuan will mass produce alumina products in July, and under the stimulation of rising alumina prices, there may be more reduced production capacity to resume production.