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Alumina Capacity May Reach 40 Mt/a in 2010

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)


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