Production Resumption At Alcoa’s Kwinana Refinery Likely To Shift Overseas Alumina Market From Small Supply Deficit To Tight Balance

SHANGHAI, May 15 (SMM) - Alumina prices dipped $3/mt to $345/mt FOB Western Australia last week, equivalent to about 2,977 yuan/mt CIF major ports in China after counting in ocean freight of $24/mt, which was 89 yuan/mt higher than the domestic spot prices. The import window has been closed since January 18. Alcoa announced in early January to cut production at its Kwinana alumina refinery in Australia by 30% due to natural gas shortages, affecting about 700,000 mt/year of capacity. This kept overseas alumina prices at highs in the first quarter.

However, this refinery began to resume production in late April, which is estimated to shift the overseas market from a small supply deficit into a tight balance. Overseas alumina prices may gradually erase the previous gains and the import window could re-open.