NBS: China's alumina output rises 8.5% YoY in Jan-Jul

In July alone, national alumina output totalled 7.57 million tonnes, which was 4.6% up on-year but marked a 2.4% on-month decrease, the NBS data showed.

Last month's decline in alumina output compared with June was mainly because supplies of domestic bauxite, a key raw material for alumina production, were tight in certain regions, according to market analysts. Equipment maintenance at some alumina producers had also led to production cuts or suspensions, they added.

Mining activity in some bauxite mines in North China's Shanxi province was restricted in July as the traditional rainy season there disrupted operations, while in Central China's Henan province, a new round of environmental inspections forced some mines to halt production, Mysteel Global notes.

Meanwhile, some alumina producers in East China's Shandong province and Southwest China's Guangxi autonomous region suspended operations during the month to undertake maintenance checks.

In addition, weakening profitability among domestic refiners also led them to curb output, analysts added. Mysteel's survey of the 44 alumina producers regularly tracked showed that in July their average profit margin fell by 12% from June to Yuan 344.4/tonne ($48/t).

By region, Shandong, Shanxi, and Guangxi remained the country's top three alumina-producing hubs in July, Mysteel Global noted.

Shandong, China's largest alumina base, produced 2.66 million tonnes last month, down by 3.7% from the prior month. Shanxi ranked second with its alumina production totalling 1.73 million tonnes – its output having risen by 3.9% from June – while Guangxi followed with 1.36 million tonnes, lower by 7.7% from a month earlier.

Table: China's July alumina output by region

Source: NBS