October 2023 alumina production in China records a dip of 1.6% M-o-M due to poor ore supply

According to the Shanghai Metals Market, China’s metallurgical-grade alumina production stood at 6.842 million tonnes, down by 1.6 per cent month-on-month but up by 2.5 per cent year-on-year. Daily average output in the said month was 220,700 tonnes, down by 3,700 tonnes from the previous month.

The decrease in China’s alumina output from the earlier month owes to a tight supply of bauxite in Guangxi and Henan, roasting maintenance, and production cuts due to carbon emission reduction policies in Shandong.

However, the country’s cumulative production from January to October 2023 grew by 2 per cent year-on-year, reaching 66.264 million tonnes. By the end of October, China’s installed alumina capacity was 100 million tonnes, operating capacity 80.68 million tonnes, and operating rate 80.7 per cent.

In October, Shanxi’s operating rate was 75 per cent, up by 2.2 per cent month-on-month, attributed to capacity resumption of 550,000 tonnes post maintenance. In contrast, Henan witnessed a 7 per cent drop in operating rate to 65.7 per cent, mainly because an alumina refinery in Sanmenxia reduced production due to ore scarcity, affecting around 700,000 tonnes of annual capacity.

Hebei’s operating rate also rose slightly by 0.8 per cent M-o-M to 88.3 per cent, while Guangxi’s operating rate fell from 89 per cent to 86.9 per cent due to an alumina refinery shutdown in early October, affecting 500,000 tonnes of annual capacity. Roasting maintenance also reduced output in Guangxi by 15,000 tonnes. The operating rate in Shandong also decreased from 90.9 per cent to 88.8 per cent in October as a result of roasting maintenance, affecting monthly output by about 100,000 tonnes.

SMM projects China’s daily alumina production to grow in November to 223,000 tonnes per day, with an operating capacity of 81.15 million tonnes, up 6.4 per cent Y-o-Y. Forecasts suggest some previously halted capacity in Guangxi will resume. Refineries in Shandong and Hebei, which ceased production in October due to environmental policies, have already recommenced.