Alumina output in China drops in November month on month; but up 8.6% YoY

According to the latest SMM production survey on China’s base metal market, the preliminary output data for November 2017 shows alumina output dropped to 5.6 million tonnes from 6 million tonnes in October. Though the output drops month on month, it registered an increase of 8.6% YoY. YTD production output for alumina through November stood at 62.8 million tonnes, up 18.1% YoY. December output is estimated to be about 5.69 million tonnes.

Pricewise, spot alumina is on a downward trend in China through November continuing in December, following the downtrend in aluminium.

As updated by Shanghai Metals Market, average spot alumina price in China has dropped from RMB 3141 per tonne on December 11 to RMB 3062 per tonne on December 12. Domestic spot alumina prices have also dropped to RMB 3060/t from RMB 3140/t on December 11.  Domestic prices are expected range within RMB 3000 – 3120 per tonne today.

Chalco alumina prices and imported alumina prices remain unchanged at RMB 3320 and RMB 3600 per tonne despite the drop in domestic prices.  The fall in domestic alumina prices can be seen in the following table.

Chinese producers are mulling opportunities of investing in alumina plants in countries with quality bauxite reserves. Shareholders of Shandong Nanshan Aluminium have approved the company’s plan to raise RMB 5 billion to invest in the 1million tonne alumina project in Bintan Nanshan Industrial Park in Indonesia. The company hopes to secure raw material supply for the Chinese aluminium industry through the project.