According to the China Nonferrous Metals Industry Association, China’s alumina output hit 3.83 million tonnes in June up 8.66% YoY and 21.38 million tonnes during H1 also up 12.18%.

Commissioning of new capacity and completion of facility maintenance pushed China’s alumina output higher. Shanxi Xinfa Xiaoyi Alumina Plant’s 800,000 MT per year alumina project entered trial operations in June. Guangxi Tiandong Jinxin Chemical’s capacity increased to 1 million tonnes per year in June. Guangxi Huayin Aluminum’s capacity also grew to 2 million tonnes per year following earlier facility maintenance.

Despite falling alumina prices, the decline in caustic soda and coal prices helped reduce production costs at alumina producers. As such, there remains room for profits. Besides, the commissioning of new aluminum capacity boosted alumina demand. These contributed to growing alumina output.

Whether alumina output will continue to rise depends on whether domestic alumina prices will rebound and whether aluminum output will continue to grow.