Alumina Capacity May Reach 40 Mt/a in 2010

China's domestic alumina production capacity may reach around 40 Mt/a in 2010 as several expansion projects are completed this year, up from about 34 Mt/a in 2009. Actual alumina output in 2010 is now estimated at 30,8 Mt. Actual output in full-year 2009 was 23,83 Mt.

China's top producer, Aluminum Corp. of China Ltd., posted this week an alumina output of 4,93 Mt in the first six months of 2010, up 54 % year-on-year.

According to figures from the National Bureau of Statistics, China produced 17 Mt of alumina in January-July 2010, up 38 % from the 12,3 Mt produced a year ago.

Domestic alumina producers expected to start new capacity or raise output this year include Chalco's new 800 000 t/a plant in Chongqing, Shandong, Lubei's 400 000 t/a line, and Chongqing Bosai's 400 000 t/a line. Shanxi's Zhaofeng Aluminium also has plans to start expansion works by end-2010 to raise capacity to 1 Mt/a by 2012 from the current 400 000 t/a. 

 The anticipated added capacity and output will likely impact domestic alumina prices in the long run, but not in the short term. Prices are expected to stay range-bound between Yuan 2750 – 2800/t ex-works in the short term.

China is currently expected to produce about 17 Mt of primary aluminium in 2010.  (08/2010)