Tight bauxite supplies, high costs, maintenance lower daily alumina output in Mar

SHANGHAI, Apr 9 (SMM) – Daily alumina output in China averaged 194,000 mt in March, down 7,000 mt from February, showed an SMM survey, as factors including tight bauxite supplies, high costs, maintenance and equipment upgrading idled a slew of capacity.

About 70.86 million mt of capacity on an annualised basis were in operation last month, compared to 73.46 million mt a month ago.

The survey also showed that production of metallurgical-grade alumina in China for March expanded 5.07% on the year and registered 6.02 million mt.

Tight supplies and higher prices of bauxite drove Chalco Huaxing, Chalco Shanxi, East Hope’s Sanmenxia and Jinzhong branches to slash alumina capacity in March. Capacity cuts across Xinfa Huayu, Xiaoyi Xinfa and Shanxi Fusheng were due to maintenance, while Xiangjiang Wanji felt impact from equipment upgrading. Most of those closed capacity have returned online or will resume in April.

Capacity resumption is expected to bolster the average daily alumina output by 7,000 mt to 201,000 mt in April, and this is estimated to yield output of 6.03 million mt for the month, up 3.88% from April 2018.

Capacity that has been upgraded to meet ultra-low emission standards is likely to be able to return online. Bosai’s plant in Nanchuan Shuijiang and Luyu Bochuang’s resumed capacity will steadily yield output. After the heating season, plants in Shanxi and Henan that faced environmental issues are expected to recover to full capacity. Those factors are also likely to help lift daily alumina output in China in April.