Chinese Alumina Refineries’ Profitability Improve Thanks to Lower Costs

SHANGHAI, Mar 27 (SMM) – Alumina prices temporarily stopped falling amid scarce trades. Recently, more bauxite has become available in the spot market with the ramp-up of mining capacity in Guinea, sending Guinean bauxite prices down from $70/mt at the beginning of this year to around $65/mt. However, further downside room will be limited as no Indonesian bauxite will flow into China with the gradual implementation of export ban. The overall bauxite market is still in a tight balance. In terms of caustic soda, taking liquid caustic soda (32% ion membrane, 100% concentration) in Shandong as an example, its ex-factory prices have dropped from 3,452.5 yuan/mt at the beginning of this year to 2,577.5 yuan/mt on a tax-included basis, translating into a 90-200 yuan/mt decline in the alkaine cost of alumina refineries.