aluminium expo
03-05 July 2024
Shanghai New International Expo Center

China’s metallurgical-grade alumina production hikes 16% M-o-M in March 2022 on output recovery from suspensions

In March 2022 (31 calendar days), China produced 6.548 million tonnes of alumina, including 6.342 million tonnes of metallurgical-grade alumina. That was a hike of 15.94 per cent from 5.47 million tonnes of metallurgical-grade alumina output in February.

China’s daily average output of metallurgical-grade alumina in March 2022 was 204,600 tonnes, an increase of 20.42 per cent month-on-month and 4.44 per cent year-on-year.

The month-on-month increase in China’s alumina production in March was primarily contributed by Henan adding 78 per cent to the total output, followed by19 per cent from Shanxi, and 11 per cent from Shandong, showed the SMM data.

SMM further explained that the growth in Shanxi’s alumina output was caused by the production resumption in March after the output curb in the previous month for reducing carbon emissions. The increase in Henan was also due to the recovery from output cut and production suspension.

The rebound of alumina production in Guangxi by 22 per cent month-on-month, contributed by the return of normal operation at Guangxi Huayin Alumimium Co., Ltd. and Guangxi Xinfa Power Industry Co., Ltd, also triggered the output hike in March.

Meanwhile, alumina output decreased in Chongqing by 32 per cent month-on-month in March 2022, attributed to the suspension of Nanchuan Xianfeng Oxidation Aluminium Co., Ltd.

SMM estimated that China’s net import of alumina would be around 150,000 tonnes in March, with a shortage of 189,000 tonnes causing alumina price hike in the month.

In total first three months of 2022, the domestic alumina production in China amounted to 17.89 million tonnes, an increase of 2.8 per cent year-on-year. The overall shortage in Q1 2022 was 55,000 tonnes, strongly supporting alumina prices.

From Q2 onwards, there is a high possibility of large production of alumina, with a capacity expansion of Xiaoyi Tianyuan Chemical Co., Ltd. (400,000 tonnes/year), the Chongqing Bosai Wanzhou project (1.8 million tonnes/year), the plan of Hebei Wenfeng New Material Co., Ltd. (1.2 million tonnes/year) and Jingxi Tiangui phase II project (800,000 tonnes/year).