Asian Metal News
Sichuan Guangyuan Linfeng Aluminum is set to build up its alumina stocks over the next few weeks prior to the commencement of primary aluminium production in October.
In October 2018, the company shut down 250 ktpy of primary aluminium capacity at its Linzhou smelter, Henan (the old plant), and relocated all of the capacity to Guangyuan, Sichuan. Sichuan’s current electricity price is RMB 0.3/kWh, which is lower than Henan’s 0.4/kWh, meaning for every tonne of primary aluminium produced, RMB 1,400 will be saved.
In October, the company is set to buy 10 kt alumina from the spot market and will sign long-term contracts with alumina suppliers in Guangxi and Guizhou afterwards (rail freight estimated at RMB 100~150/t). Once Guangyuan’s aluminum smelter is in full operation, it will consume alumina 500 kt per annum.
At present, mainstream alumina prices are standing at RMB 2,470~2,520/t ex-works in southwestern China, an increase of RMB 20/t on last Friday.