Asian Metals News
East Hope Jinzhong Aluminium Co. Ltd. is set to produce 2.5 mln t of alumina in 2019, up by 38.9% y-o-y from 1.8 mln t in 2018.
East Hope Jinzhong started a 1.2 mtpy alumina production line in October 2018, expanding its capacity from 2 mtpy to the present level of 3.2 mtpy. According to an internal source, the company is now running at 75% operational rate and has no expansion plans in the face of weak alumina prices and increased environmental pressures. In early December, domestic alumina prices had fallen by RMB50/t to RMB2,450/t ex-works, seeing most local Shanxi refineries in loss.
The company plans to produce 200 kt of alumina in December, the same as November. The alumina produced will be supplied to the two aluminium smelters under the East Hope Group in IM.
At present, mainstream alumina prices are standing at RMB 2,420~2,470/t ex-works in Shanxi, falling by RMB10/t from the beginning of this week. Downstream buyers are still cautious, resulting in sparse transactions on the spot market.
