Ramp-Up of New Capacity to Send Huge Supply Shock in Alumina Market

SHANGHAI, Apr 3 (SMM) – In Chinese alumina industry, new capacity was commissioned one after another. Hebei Wenfeng put its fourth production line (1.2 million mt/year) into operation in late March, which will bring its total operating capacity to 4.8 million mt/year in April. Tiandong Jinxing's phase two project (1.2 million mt/year) began operations in late March, which will bring its total operating capacity to 2 million mt/year in April. Lubei Chemical has put its phase two project (1 million mt/year) into trial operations, which will allow its total operating capacity to reach 2 million mt/year in May. Market pessimism was simmering as the combined 3.4 million mt/year of new capacity from these three refineries will send huge supply shock in the future.