Asian Metal News
4th Feb.: Shanxi Xiaoyi Huaqing refinery, designed with alumina capacity of 450 ktpy, cut its operations by 50% two days ago.
According to an internal source, the company could not obtain sufficient raw material supply including coal and liquid caustic soda due to interrupted road transport and city lockdowns, which were put in place to prevent the spread of 2019-nCoV. At present, the company is reliant on rail transport for alumina delivery orders and currently holds no stock.
Xiaoyi Huaqing produced 35 kt of alumina in January 2020, with February output estimated at 20 kt. Its 2019 annual output was 400 kt.
Mainstream alumina transaction prices in Shanxi are RMB2,440~2,490/t at present. Prices are likely to lift further next week should the pressure on logistics continue into next week.