Chinese Government to Order Xinfa Aluminium to Suspend Almost 400 Thousand MTPA This Winter

Aluminium Insider - October 19th, 2017

Draft documents from the city government of Shandong Xinfa Aluminium Group's hometown reveal that the firm may be compelled by the government to curtail a significant amount of capacity over the coming winter months.

The documents, which were obtained by Reuters in draft form, were issued by the Liaocheng city government and authenticated by an official there, according to the news agency.

According to the document, Xinfa would be obliged to pause 381,900 metric tons per annum of aluminium smelting capacity between mid-November and mid-March. The official said that a final version would be published by the end of this week.

The smelter in question has a nameplate capacity of 1.58 million metric tons per annum. In addition to this smelter in western Shandong Province, Xinfa also maintains smelting capacity in Xinjiang which, as yet, is not subject to seasonal cuts.

To date the Chinese government has ordered Xinfa to shutter 530,500 metric tons per annum of illicit capacity this year. The company did not respond to Reuters' request for comment.

According to a survey carried out last week by Reuters, up to one million metric tons per annum of aluminium smelting capacity could be halted over the winter months. However, industry watchers have long questioned capacity numbers coming from the Middle Kingdom, especially from government sources.

The cuts in question come in addition to Beijing's call upon smelters in over two dozen Chinese cities to lower output over the winter months in an effort at lowering smog. The significant majority of aluminium smelted in China is powered via coal-generated electricity, and the winter months are a traditional high-water mark for overall coal use due to the important role the fuel plays in heating homes and businesses.

China continues to face a global backlash from the aluminium industry for continuing to subsidize superfluous smelting capacity.

China aluminium production slips in September

Kitco - October 19th, 2017

China's aluminium output fell a third straight month in September, official data showed on Thursday, although it remains on track to hit a record high in 2017 despite capacity cuts.

The world's top aluminium producing country churned out 2.61 million tonnes of the metal last month, down 1.1 percent from 2.64 million tonnes in August and 5.6 percent from 2.751 million tonnes in September 2016, according to the National Bureau of Statistics (NBS). Year-to-date aluminium production still came in at 24.66 million tonnes, up 5 percent year-on-year, the NBS said.

Production has been falling since June's record high of 2.93 million tonnes, following the closure of illegal smelters. It is set to dip further in the coming months as China imposes its first-ever restrictions on winter aluminium output. Smelters in 28 northern Chinese cities must reduce production by at least 30 percent, although it appears top producer China Hongqiao Group will be allowed to cut by much less. China's overall non-ferrous metals output in September came it at 4.44 million tonnes. Production was up 0.5 percent from 4.42 million tonnes in August and down 3.1 percent from a year ago, but it is also set to post a record high for the full year. .

January-September nonferrous production stood at 40.73 million tonnes, up 4.1 percent from the same period last year.

Rio Tinto releases third quarter production results

BN Americas - October 17th, 2017

Quarterly bauxite production was 12.9 million tonnes for a second consecutive quarter, four per cent higher than the third quarter of 2016, driven by strong performances at Gove and Weipa. Third party shipments for the third quarter were 8.2 million tonnes. Bauxite production guidance is revised to between 50 and 51 million tonnes (previously 48 to 50 million tonnes).

Metro Mining's construction of the Bauxite Hills Mine is on time and within budget

Proactive Investors - October 16th, 2017

Metro Mining Ltd continues to makes strides towards becoming a leading independent Cape York bauxite producer.

Around 75 people are currently working on the Bauxite Hills Mine with indigenous employees holding 41% of the positions in all facets of the construction program.

Metro has already signed a binding off-take agreement with the Xinfa Group, one of China's largest integrated aluminium companies.

The agreement has a four-year term and provides for contract tonnage of 1 million tonnes of bauxite in 2018 and 2 million tonnes for each of the following three years.

Key Chinese aluminium city to shut 2.57 mln T of capacity for winter

Reuters - October 13th, 2017

The Chinese city of Binzhou, home to top global aluminium maker China Hongqiao Group , has ordered 2.57 million tonnes of annual smelting capacity to be closed this winter, according to Reuters calculations based on a government document.

The document, whose authenticity was confirmed by a Binzhou official, outlined more than 2,500 pot closures at 13 smelters from Nov. 15, 2017 to March 15, 2018, the main winter heating season in northern China.

Public Business Minister Urges Haste for Egypt Aluminum's Expansion Plans

Aluminium Insider - October 13th, 2017

Egypt's Minister of the Public Business Sector Asharaf El Sharkawy called upon state-owned Egypt Aluminum to slash the time the firm plans to take prior to launch its planned development project once feasibility studies have been completed.

Per a report released by the Ministry of Public Business Sector earlier this week, plans are in the works to increase Egyptalum's overall capacity via the construction of a new 250-thousand-metric-ton-per-annum smelter.

Vic Alcoa smelter completes restart

SBS - October 12th, 2017

Victoria's struggling Alcoa aluminium smelter has finally been restored to full capacity after a power outage 10 months ago severely damaged equipment.

Premier Daniel Andrews was in Portland on Thursday to celebrate the completion of the smelter restart after damage from the blackout brought the smelter close to closing.

Alba's Aluminium Production Volume Jumps 3 Percent in Third Quarter

Aluminium Insider - October 10th, 2017

Aluminium Bahrain B.S.C. (Alba) announced yesterday that the firm's sales and production volumes in the just-ended quarter both topped last year's totals.

For the third quarter the Bahraini smelter boasted a total sales volume of 247,540 metric tons, which was good for a 0.5% increase year-on-year. Alba's smelters produced 253,475 metric tons in the quarter, representing a 3-percent increase from last year's third-quarter numbers.

Vedanta logs record aluminium production in Q2

The Hindu Business Line - October 10th, 2017

Vedanta, a diversified metal and energy company, has recorded highest ever quarterly production of aluminium production.

Aluminium production increased 36 per cent to 4.01 lt with the ramp up of production at the Jharsuguda and Balco smelters.

Expanded Aluminium Capacity Under Consideration by Sohar Aluminium

Aluminium Insider - October 8th, 2017

The CEO of Oman's Sohar Aluminium told domestic media late last week that his company plans to increase its smelting capacity over the next several years.

Said Mohammed Al Masoudi said that Sohar is aligning its priorities with Tanfeedh, the Omani government's plan for economic diversification, which recommends a multi-million-dollar plan to increase production. The government anticipates that a production increase will lead to a rise in both industrial activity and overall employment.

Of Sohar's 375 thousand metric tons of annual aluminium production, forty percent of it is exported.

China Estimates Domestic Aluminium Demand to Increase by 6 Percent in 2018

Aluminium Insider - October 1st, 2017

According to numbers released by the state, the People's Republic of China will see a 6-percent rise in refined aluminium demand in 2018, rising from this year's estimated demand of 34.8 million metric tons to 36.9 million metric tons.

According to Antaike's numbers, domestic supply was sufficient to meet demand. Their numbers show a domestic aluminium supply of 18.59 million metric tons per annum through the first half of 2017, a rise of 19.8 percent year on year. Demand over that period was 17.5 million metric tons, an increase of 9.6 percent. Overall, the first half of the year saw China's domestic aluminium industry with a surplus of 1.1 million metric tons, a reversal year-on-year from last year's first-half deficit of 440 thousand metric tons.

Antaike's forecast for primary aluminium smelting capacity in the coming year to be below market expectations, saying that 7 million metric tons per annum of capacity was likely to be added in 2017-2018. All in, the agency predicts that China will have a smelting capacity of 47 million metric tons per annum by the end of next year.