Asian Metal News
Xinfa Chemicals, Xinfa’s alumina refinery in Xiaoyi Shanxi, designed with 3.6 mtpy capacity across three lines, resumed operation on one 1.2 mtpy production line two weeks ago. As a result, the company’s bauxite consumption is expected to rise by 67% m-o-m to 300 kt during April.
The company had only one 1.2 mtpy alumina production line in operation from mid-February due to local bauxite supply shortages. With local bauxite supply increasing, the company restarted one additional line two weeks ago and now has two production lines in operation. According to an internal source, the company will not restart the third line in May due to the weak price outlook.
The company’s daily procurement of bauxite is now at 40 kt, double that of mid-April, and its bauxite storage has surged from 200 kt in late March to the current level of 500 kt.
Reliant on domestic bauxite, the company can consume 9.7 mln t of bauxite per annum with 2019 annual consumption of 7.1 mln t and Q1 2020 consumption of 1.1 mln t.
Mainstream bauxite prices (A/S 5.0 grade) currently stand at RMB370~400/t delivered without taxes in Shanxi, a decline of RMB100/t.