During the winter production cut period, total bauxite capacity cuts in 31 cities account for 30% of the national total, while cuts for alumina are much larger - taking 40% of the national total. In addition, suspension of domestic bauxite mines on application of stringent environmental rules is further limiting output.

During H1 2017, China’s alumina output hit 34.69 mln t, while demand was 36.66 mln t. With alumina imports of 1.55 mln t there is still a shortfall of approximately 420 kt.

Recently, the local government of Sanmenxia Henan suspended all bauxite mining for a month in Wangjiahou County, Shanzhou District. Shanxi Environmental Protection Bureau suspended all bauxite mining during the 19th CCPC conference period (starting 18th Oct.). At the same time, social unrest in Guinea has also further tightened bauxite supply in the global market. 

As a result, the deficit of bauxite supply in the domestic market is likely to increase and boost prices.