By Mid July China’s Alumina Industry Completed Construction of a Total of 65.55 Million Tonnes of Capacity



By Mid July China’s Alumina Industry Completed Construction of a Total of 65.55 Million Tonnes of Capacity

According to relevant statistical data, by mid July, China’s alumina completed a total of 65.55 million tonnes capacity, and operated 56.60 million tonnes of capacity, capacity operating rate reached 86.34%.

Wherein, Mongolia Xinwang Renewable Resource Co., Ltd suspended production due to environmental protection requirements, and temporarily did not resume production; Jinjiang Group Xing An Chemical has basically resumed full load production after the sunken cell accident; Guizhou Huajin Aluminum Industry basically reached production capacity; Chongqing Bosai Mining is operating at full capacity, there is no obvious change in the capacity of alumina enterprises in other regions.

Furthermore, market rumor said three aluminum smelting factories subsidiaries under the State Power Investment Corporation would reduce production by 620,000 tonnes in the near future, which may bring impact to the production of its alumina suppliers, however according to verification up till now, alumina suppliers have not yet received explicit notice on production cut.

Compared with the stable operation start in the alumina industry, domestic alumina price still has downward pressure. According to statistics, by the week ending July 17, prices of domestically produced alumina remained stable, there’s no obvious change in the market, quotations from all regions remained stable.

Currently the market is mainly concerned with the moving trend of aluminum price, the longer aluminum price remains at low level, the higher the expectation of production reduction will be, within a short period alumina can hardly extricate itself from the overall weak moving trend, the moving direction is still downward. Nevertheless, in recent days, there is obvious fluctuation in the domestic import alumina market.