Alcoa: global aluminum demand is expected to increase by 10% in 2021 compared with the previous year

Aluminium Ingot January Production Analysis & February Forecast

According to SMM's research findings, Yunnan Province is currently experiencing a dry season, with hydropower contribution remaining at a relatively low level. Enterprises have no immediate plans for production resumption and await clearer policy guidance from the power sector.

The implementation of Indonesia's ban on bauxite exports since June last year has led to bauxite surplus, brought challenges to consume domestically as the Indonesia's alumina plants have limited capacity. Ronald Sulistyanto, Chairman of the Indonesian Bauxite and Iron Ore Entrepreneurs Association (Asosiasi Pengusaha Bauksit dan Bijih Besi Indonesia - APB3I), highlighted the struggle to secure external investment for alumina plant projects, while some entrepreneurs are forced to cut costs or halt production. However, there is hope for relief through potential relaxation of the export ban policy. Efforts are underway to boost alumina production capacity, although challenges persist in addressing the surplus bauxite issue.

According to SMM survey, the domestic high-carbon ferrochrome output totalled 389,000 mt in September, a drop of 96,200 mt or 19.83% month on month, and down 133,600 mt or 34.34% year on year.

The project is designed with an annualised capacity of 2 million mt

An estimated 7,000 mt of low-grade nickel pig iron (NPI) output will be affected across low-grade NPI plants in Linyi of Shandong province as plants shut for the Shanghai Cooperation Organisation

The operating rates at Chinese domestic zinc concentrate mines are expected to drop further in February, leaving smelters more reliant on imported materials.

SMM surveys major Chinese producers in the base metals market every month to get first-hand production data. The following table shows the latest output in December and our forecast for January.

China’s stainless steel output reached 2.15 million mt in November, down 1.5% from October.

As per SMM research, one low-nickel pig iron plant in Guangxi has delayed its production since breakdown maintenance.