Shanghai Nonferrous Metals News
SMM: China produced 5.81 mln t of alumina (MGA) in April, up 0.1% on-year with annual operational capacity at 70.64 mtpy. China’s daily average alumina output for April was 194 kt, the same as that in March. China’s total alumina output during the first four months of 2019 reached 23.59 mln t, up 5.71% on-year. A number of factors including policy, technology upgrades and market issues limited total domestic alumina output in April, which was less than expected. In April, Shandong Weiqiao curbed capacity due to environmental upgrades, while Bosai Nanjiang refinery’s output is as yet, unstable, East Hope Sanmenxia contracted its operational capacity to 2.1 mtpy, Chalco cut a total 1 mtpy capacity on losses, and maintenance at Shanxi Fusheng and IM Xinwang also resulted in a decline in overall output.
Looking forward to May, SMM forecast China’ s alumina output at 6.17 mln t, up 1.86% on-month and with daily average output expected at 199 kt, up 5 kt on-month. Capacity resumptions in May are expected to be stable and some previously idled capacity such as Shanxi Huaxing is likely to increase its operational capacity. Meanwhile, some capacity that was previously idled or on maintenance during March and April is likely to resume and generate some output. However, Guangxi Xinfa plans to suspend one 600 ktpy alumina production line in May.
