Asian Metal News
Chongqing Shuijiang alumina refinery suspended one alumina production line last week. The company has designed alumina capacity of 800 ktpy, with two production lines of 400 ktpy each. According to a company representative, production costs are presently approximately RMB 2,600/t. With alumina prices sitting lower than production costs, the company is reluctant to run at full capacity.
Chongqing Shuijiang refinery came online in May 2019 and originally planned to reach full capacity operation in July. The plan will not be achieved due to weak prices. Shuijiang’s July output is estimated at 40 kt, the same as last month and the company currently holds approximately 10 kt alumina in stock.
At present, mainstream alumina prices are standing at RMB 2,480~2,530/t ex-works in southwestern China, a decline of RMB 100/t from last Friday.