CHINA DATA: October alumina output down 3.9% on month

China's alumina output reached 6.29 million mt in October 2021, down 3.9% on the month and 2.2% lower on the year, data from the National Bureau of Statistics showed Nov. 18.

On a monthly basis, China's aluminum output has been on a decline for three straight months.

Floods in the Shanxi province during the early part of October and power shortages led to the decline in output, industry sources said. China's alumina output is expected to remain soft during the winter heating season, they added.

China's largest alumina hub, Shandong, saw its October output declining 0.7% on the month to 2.22 million mt, while Shanxi's output fell 4.3% on month to 1.7 million mt, according to NBS data. The steepest fall was in Henan, with October production falling 16.8% on the month to 747,900 mt.

Meanwhile, alumina output rebounded in Guangxi, rising 3.8% on the month, to 915,100 mt, on the back of some refiners gradually resuming idled capacity after power restrictions eased in the region.

China's daily alumina output hit 202,935 mt in October, down 7% from September, hitting the lowest level since January, according to S&P Global Platts calculations.

China's alumina output has totaled 65.15 million mt in the first 10 months of 2021, up 6.6% on the same period last year.

Alumina price

China's alumina prices are seen under pressure in the months ahead, as demand from domestic primary aluminum smelters continues to stay weak amid output cuts. A significant drop in domestic aluminum prices over the past few weeks has also weighed on alumina prices, sources said.

The Platts Shanxi daily spot alumina assessment closed at Yuan 3,600/mt ($564/mt) ex-works Shanxi cash terms Nov. 17, down Yuan 520/mt, or 12.6%, compared to the level on Oct. 20, which was the highest level seen this year.