Alumina Output Was 15.7 Million Tons in Shandong 2015

Alumina output was about 15.7 million tons in Shandong district in 2015, with year-on-year growth of 31%, whose production accounting for 30.5% of the total national output, continued to rank the first place.

From January to October, it has been a steady rise in alumina production in Shandong district, because a company in Shandong continues to put into the production of alumina in order to coordinate its own electrolytic aluminum production project. In 2015, the company’s production capacity of alumina project is 6 million tons, and the operation capacity of alumina can be up to 11.5 million tons.

Since September 2015, the decline in the prices of domestic alumina starts and by the end of 2015, the prices of domestic alumina have decreased to 700 RMB/ton to 1570-1620 RMB/ton. The whole alumina industry are facing cash flow losses. In order to control the price of alumina that no longer continues to drop, alumina manufacturers make joint production reduction. From November, the company from Shandong starts to reduce the production of alumina about 1 million tons, and there are some companies that reduce the production about 2 million tons, or even stop producing metallurgical grade alumina. Therefore, from November to December, the alumina production decreases significantly in Shandong district.

The price of aluminum ingots has not gained substantial improvement, and electrolytic aluminum manufacturers are still reducing the production. The alumina prices can not get the support, so it is expected that in the first half of 2016, China's alumina market is still difficult to take a turn for the better, and the alumina production may continue to slide in the future.