Alumina Prices Fell At A Slower Pace, Eyes On Whether Aluminium Smelters In Yunnan Will Resume Production

SHANGHAI, Jun 12 (SMM) – Price review: The SMM weighted alumina index stood at 2,843 yuan/mt as of last Friday, down merely 1 yuan/mt from a week ago.

The biggest variable for influencing alumina prices would be the progress of aluminium production resumption in Yunnan. Given the unstable hydropower generation in Yunnan at the moment, nearly 2 million mt of idled aluminium capacity in the province has slim chance of being fully restarted in a short period of time. If hydropower supply in Yunnan is sufficient for local smelters to resume production on a full scale, surplus alumina will be digested and alumina prices could bottom out. Otherwise, alumina prices will be weighed down further by supply glut.