Asian Metal News
SPIC Shanxi, with designed alumina capacity of 3 mtpy across six production lines, suspended operations of one 500 ktpy production line (HT) in late August due to pressure from continuing low prices. The company produced 240 kt of alumina in August and September output is expected to fall to 200 kt. The company currently holds 30 kt of alumina in stock.
With current domestic alumina prices (ex-work) sitting below RMB2,600/t, the majority of domestic refineries are facing deficits of RMB100/t. With a bleak price outlook, SPIC has no plans to resume the production line in the short-term.
SPIC chiefly source bauxite from the market, consuming 600 kt in August with 500 kt consumption expected for September. It holds 800 kt bauxite in stock at present.
SPIC produced 2.7 mln t of alumina in 2018 and its annual output for 2019 is estimated to be the same.
