Asian Metal News
Shanxi Liulin Senze Coal and Aluminium has cut its alumina production by 50% since late January 2020 due to bauxite supply shortages. The company has three alumina production lines, of which one is under suspension. Senze has a captive bauxite mine with 24 mln t of resource reserves and designed capacity of 3 mtpy, supplying A/S 4.5 grade bauxite. The mine is presently under suspension. Senze is running low on bauxite stocks, having enough stocks for 20 days’ operation, much lower than the regular stock level of 45 days.
Senze is designed with alumina capacity of 1.3 mtpy, and its March output is estimated at 50 kt, falling from 90 kt in February. The company currently holds no alumina in stock. According an internal source, the company is planning to restart its captive bauxite mine in two weeks and may ramp up its alumina operation in full by end-March.
Mainstream alumina prices currently stand at RMB 2,600/t ex-work in Shanxi, up by RMB20/t from the beginning of the week.