China’s alumina production dips in June by 2.1% M-o-M as an effect of a significant fall in the operating rate at Hebei

In June 2024 (30 days), China's metallurgical-grade alumina output dipped 2.1 per cent M-o-M, standing at 6.842 million tonnes versus 6.989 million tonnes. However, on a year-on-year basis, the production in June 2024 edged an increase of 5.91 per cent from 6.46 million tonnes, according to the Shanghai Metals Market survey.

The average daily production in June 2024 was 228,100 tonnes per day, down by 4,900 tonnes from 233,000 tonnes in May 2024 but up by 13,100 tonnes from 215,000 tonnes in June 2023.

Combining China's alumina output in each month of H1 2024, the country's total production of the ore amounted to 40.293 million tonnes, up 3.84 per cent Y-o-Y.

At the end of June, China's installed capacity for metallurgical-grade alumina was 100.6 million tonnes, with an operating capacity of 83.24 million tonnes and an operating rate of 82.7 per cent.

Production analysis by region

The decrease in China’s alumina production during June 2024 was primarily led by Hebei where alumina refineries’ operating rate plunged by 6.1 per cent M-o-M to 89.6 per cent, mainly because a local refinery, having an annual capacity of 800,000 tonnes, conducted roasting furnace maintenance in June. Other key alumina-producing provinces saw improved operating rates but were not sufficient to offset the effect of the downfall in Hebei.

In Henan, the operating rate rose 2.2 per cent M-o-M to 68.3 per cent, attributed to increased production at a local alumina refinery in early June as the bauxite supply shortage eased, bringing an annual capacity to 300,000 tonnes.

In Guizhou and Shanxi, alumina refineries' operating rate grew by 1 per cent and 0.8 per cent M-o-M to 81.8 per cent and 76.6 per cent, respectively. The operating rate increased in Guizhou as an alumina refinery resumed after equipment maintenance with an annual production capacity of 900,000 tonnes versus 400,000 tonnes earlier. In Shanxi, the operating rate was boosted by the capacity increase of a medium-sized refinery, involving an annual capacity of 300,000 tonnes.

In Guangxi, the operating rate during June rose slightly by 0.5 per cent M-o-M to 88.9 per cent as an alumina refinery expanded its capacity to 200,000 tonnes, supplemented by imported bauxite.

Forecast to July 2024

SMM predicts China's daily average metallurgical-grade alumina production will reach 230,800 tonnes in July, with an operating capacity of around 84.24 million tonnes, up 3.9 per cent Y-o-Y. According to SMM, this growth will be backed by about 300,000 tonnes of new capacity resumption in Shanxi. In addition, an alumina refinery in Guangxi is also aiming to complete its maintenance by mid-July, resuming 300,000 tonnes of capacity.

Sourced from SMM under the content exchange agreement