Asian Metal News
Shanxi Huaxing Aluminium designed with 2 mtpy alumina capacity, comprises two alumina production lines of 500 ktpy each and a 1 mtpy production line. Huaxing suspended operations of one 500 ktpy production line last weekend. Prior to the suspension, total operational capacity at the refinery was 1.5 mtpy.
Due to tightening supply of local bauxite, Huaxing started using Australian diaspore for alumina refining on one of its 500 ktpy production lines in early July, however, they did not perform any technological upgrades on the line. An internal source said, ‘We suspended the 500 ktpy production line last weekend due to problems with the precipitation process, arising from high organic content in the Australian diaspore’. The company is only operating its 1 mtpy alumina production line at present and has not, as yet, planned any upgrade of the suspended production line.
Huaxing produced 120 kt of alumina in August, and its September output is expected at 110 kt. The company has consumed approximately 400 kt of imported bauxite in the year to date. Its 2018 output totaled 1.8 mln t, with 700 kt output during the first eight months of 2019 and annual output expected at 1.5 mln t.
The company holds no alumina inventory.
At present, mainstream alumina prices are standing at RMB 2,580~2,630/t ex-works in Shanxi, an increase of RMB10/t from earlier this week.
