Where are China's main aluminum hydroxide production areas?

Are you struggling to find the right aluminum hydroxide supplier in China? This confusion can lead to higher costs and unstable quality, which hurts your business and your reputation.

China’s main aluminum hydroxide production is concentrated in the provinces of Henan, Shandong, and Shanxi. These regions host many factories that process crude alumina into fine aluminum hydroxide powder. These products serve various industries, including pharmaceuticals, chemicals, and flame retardants for plastics.

Knowing the main provinces is a very good first step. I see many international buyers make the mistake of only looking for suppliers in big port cities like Shanghai or Qingdao. They often find trading companies¹ there, not the actual factories. The real production happens inland, in specific industrial clusters².

But to really understand the market and get the best deal, you need to know more. You must understand who the real producers are and how the entire supply chain³ works from the ground up. This knowledge will help you find a true factory partner. Let’s look deeper into how it all works.

Who is the producer of aluminium in China?

You think you are buying from the source, but are you really? Many sellers you meet are just middlemen. This adds unnecessary costs and creates risks for your business.

The main producer of raw alumina in China is the Aluminum Corporation of China, which people call Chalco. Chalco is a very large state-owned company. It mines bauxite and refines it into alumina, the starting material for all aluminum hydroxide producers like my factory.

When I first started in this business, I also found this structure confusing. Many people think a factory does everything from mining to the final product. But in China, the system is more specialized. Chalco is a giant. They focus on producing huge amounts of raw material, which is alumina⁴. Then, hundreds of factories like mine, located in Henan, Shandong, and Shanxi⁵, buy this alumina from Chalco. Our job is to turn this coarse raw material into a fine, high-quality powder. This is the aluminum hydroxide that you buy. We do this through a process of grinding, purification, and grading. This two-step system is actually very efficient. Chalco handles the massive scale, and we processors focus on quality and creating specific grades for different customers, like pharmaceutical-grade for your business. This is why it is so important to connect directly with a processor.

Where can aluminum hydroxide be found?

You know the right provinces, but where are the factories? They are not in the big city centers. Wasting your time with companies in the wrong locations is frustrating and costly.

You can find aluminum hydroxide factories in dedicated industrial zones within Henan, Shandong, and Shanxi. These locations are chosen for their access to energy, water, and transport links. For example, my factory is in an industrial park in Henan, not far from major highways.

There is a very practical reason why our factories are clustered in these three provinces. The process of turning alumina into fine aluminum hydroxide powder uses a lot of electricity and water. It is a heavy industrial process. I know this well because I managed production for years, and our energy bills were always a major cost. Henan, Shandong, and Shanxi have a long history of heavy industry. They have the power plants and water resources needed to support our work. Local governments here also understand our industry and have created policies to support it. This creates a strong ecosystem. In my city in Henan, for example, there are many other aluminum hydroxide factories. This competition is good. It pushes all of us to improve our quality and keep our prices fair for buyers who know where to find us. This is different from coastal cities, where the focus is more on trade and light manufacturing.

A Comparison of the Main Production Provinces

How big is the aluminum hydroxide market?

The global aluminum hydroxide market seems huge and very complex. It can be hard to understand its true scale. But without this knowledge, you cannot judge prices or find real opportunities.

The global aluminum hydroxide market is very large. It is valued at over 4 billion US dollars and is still growing. China is the world’s biggest producer and also a major consumer. This large scale creates a lot of competition, which is good for buyers like you.

The market is big because aluminum hydroxide is a very useful material. It has many different applications across several industries. This diversity keeps demand strong. For example, its largest use is not what many people think.

Main Uses for Aluminum Hydroxide

Flame Retardants: The biggest market is for flame retardants⁸. When you add aluminum hydroxide to plastics, rubber, and cables, it makes them safer in a fire. It releases water when heated, which cools the material and suppresses smoke.

Chemicals and Pharmaceuticals: This is a more specialized but very important market. In your field, Mr. Park, you know it is used as an active ingredient in antacids to treat stomach issues. It is also a starting material for making other aluminum chemicals, like aluminum sulfate for water treatment.

Other Uses: It is also used as a filler in paper and plastics to make them white and opaque, and in the production of glass and ceramics.

While the overall market is huge, the segment for high-purity, pharmaceutical-grade aluminum hydroxide⁹ is much smaller. Not every factory can make this. It requires very strict quality control and advanced processing technology, which is something we take great pride in at my factory.

What is the capacity of alumina in China?

You hear news about supply chain problems and may worry if China can produce enough material. This uncertainty makes it hard to plan your long-term purchasing and feel secure about your supply.

China has the world’s largest alumina production capacity, at over 80 million tons per year. This huge capacity means the supply of raw material for aluminum hydroxide is very stable. Major supply disruptions are very rare, which ensures our factories can operate reliably.

This massive capacity for alumina, our main raw material, is a great advantage for China’s aluminum hydroxide industry. It means that the basic cost of our input material is stable and competitive. Companies like Chalco have invested billions to build these giant refineries, so we processors never have to worry about a shortage of alumina.

Crude Alumina vs. Processed Aluminum Hydroxide

However, there is a very important difference between raw material capacity and final product capacity. Having a lot of alumina is just the first step. The real challenge, and where the value is created, is in the processing. Turning that raw alumina into a consistent, high-purity powder that meets pharmaceutical standards requires special technology and expertise.

The Importance of Processing Technology

This is where factories like mine come in. We have invested heavily in modern grinding machines, purification systems, and laboratory equipment. Our ability to control particle size, purity, and other specifications is what separates us from a basic commodity producer. So, while China’s alumina supply is almost unlimited, the capacity for high-quality, processed aluminum hydroxide is more limited. This is the key for a smart buyer to understand. You are not just buying a raw material; you are buying a carefully processed product.

Conclusion

China’s aluminum hydroxide industry is based in Henan, Shandong, and Shanxi. By working directly with a processor, you can secure a stable supply of high-quality products at a fair price.