Alumina Prices in Guangxi Bear the Brunt of Demand Shock

SHANGHAI, Mar 14 (SMM) - In south-west China, aluminium smelters in Yunnan were subject to a second round of power rationing in late February in an attempt to tackle worsening power shortages, which involved 780,000 mt of aluminium capacity and was equivalent to a monthly output reduction of 65,000 mt. This was estimated to threaten nearly 130,000 mt of alumina demand per month. Sagging demand broke tight balance in the alumina market and sent alumina prices in Guangxi lower. Alumina prices in Guangxi dropped 60 yuan/mt from early February to 2,830 yuan/mt on March 10. The price difference between Shandong and Guangxi expanded from 25 yuan/mt to 95 yuan/mt, and that between Shanxi and Guangxi widened from 85 yuan/mt to 145 yuan/mt.