MYSTEEL: China's Feb alumina output dips MoM, but daily production picks up in key regions

Even though alumina production in seven of the nine regions decreased last month, the daily average output in five regions improved, with North China's Shanxi and East China's Shandong recording the highest increases, Mysteel Global noted.

The daily average alumina production in Shanxi rose to 55,600 tonnes/day in February, marking the biggest on-month increase of 12.3%, Mysteel's tracking data showed. The surge was largely driven by the resumption of a 1 million tonnes/year alumina production line in Jinzhong city, sources said.

Similarly, the daily alumina output in Shandong increased to 91,400 t/d, jumping 11.1% from January. Moreover, Shandong's total production reached 2.56 tonnes in February, recording the fourth consecutive monthly increase and hitting its highest monthly production since January 2017, Mysteel Global noted.

The marked growth in Shandong's alumina output last month was largely because two alumina production lines with a total capacity of 2 million tonnes/year were commissioned by a leading alumina producer in the province's Binzhou city, according to sources.

In contrast, Southwest China's Guizhou saw on-month declines in both daily average and total alumina production last month. Mysteel's survey showed that Guizhou's alumina output during February fell to a five-month low of 417,000 tonnes, down by 59,000 tonnes or 12.4% on month. Two local alumina refiners suspended operations for overhauls, which primarily contributed to the reduction.

In February, Chinese spot alumina prices slumped with an overall supply surplus. The average spot price assessed for China's five major alumina production bases throughout last month plummeted to Yuan 3,473/tonne ($479.4), lower by a significant Yuan 1,470/t or 29.7% from January, Mysteel's price assessment showed.

Written by Iris Pang, pangjunyu@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com