A pair of aluminium producers in the People’s Republic of China announced additions in capacity totaling 205 thousand metric tons per annum late last week.
On Friday, Shanxi Chinalco Huarun revealed a plan to bump aluminium capacity by 125 thousand metric tons by the end of this month. According to an unnamed source who spoke with Shanghai Metals Market, the addition will double the plant’s existing capacity, and the move is the first step in a plan to bump the site’s nameplate capacity to a total of 432 thousand metric tons.
SMM went on to say that the site buys electricity at CNY0.286/kWh.
Later that day SMM broke the news that Henan Longsheng New Materials Technology began construction of 80 thousand metric tons per annum of aluminium strip and sheet processing capacity at its plant in Xuchang, Henan province. Per local reporting, the capacity under construction is expected to produce specialty aluminium for high-tech uses, including shipbuilding and aerospace. No projected completion date was specified in media reports.
Both projects come as imports of bauxite ore continue to rise. Numbers released on Friday by the country’s customs department showed a bump of 1.14 million metric tons in imported bauxite in the month of February over the prior month, pushing the month’s total imports to 9.41 million metric tons. Imports from Australia, Indonesia, and Guinea combined rose by 1.26 million metric tons over January’s total, according to the data.