Aladdiny: Coal gas supply for alumina refineries in Henan continues tight, resulting in decreased alumina output in local areas. Henan East Hope Sanmenxia maintained their operation at 1.2 mtpy, while Kaiman Aluminium was at 1.8 mtpy. Heung Kong Wanji cut their operational capacity further to 600 ktpy last week after contracting capacity at end-January, resumptions will be subject to the coal gas supply situation.
Domestic primary aluminium smelters face low levels of alumina inventories as a result of road transport restrictions during the outbreak of NCP. According to Aladdiny, several aluminium smelters in Shaanxi and IM are in discussion with railway bureaus and are considering swapping from road to rail transport – even over relatively short distances of 200 km. In comparison to road transport, short distance rail transport will drive up overall alumina costs by RMB 100/t, delivered to smelters.
Over the past five days, alumina refineries lifted their alumina ex-work prices by RMB20~30/t; furthermore, rising transport costs have driven up alumina prices delivered to smelters by RMB50~150/t. At present, mainstream benchmark alumina prices in northern China average RMB2,500/t ex-works and the spot alumina price at railway platforms in Xinjiang is RMB3,000/t.