Manufacturing News

Chalco to lower aluminium oxide output

Aluminium Corporation of China Ltd, known as Chalco, said on May 31 that it will lower its aluminium oxide production by 1.7 million tons this year due to Indonesian export restrictions on the raw material bauxite.

The reduction represents 15.44 percent of China's production of aluminium oxide, the major material in aluminium production.

Indonesia said in early May that exporters of minerals will face duties of about 20 percent. The exports of 14 minerals, including bauxite, are expected to be fully prohibited by 2014.

In addition to Chalco -- China's biggest aluminium producer -- five other aluminium oxide producers called for a joint move on May 31 to reduce the production of aluminium oxide by 10 percent starting in June to stabilize the market.

China's bauxite imports stood at 5.29 million tons in April, up 29.38 percent year-on-year. More than 87 percent of the raw material came from Indonesia, according to China's General Administration of Customs.

About 60 percent of China's bauxite is imported. In 2011, Indonesia supplied 35.79 million tons of bauxite to China to produce 11.93 million tons of aluminium oxide.

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