Alumina price to fall back, but the downside may be limited

From October 10 to November 10, the average SMM alumina index was 3,006 yuan/mt, up 41 yuan/mt MoM. The average alumina price FOB Western Australia was $340/mt, down $1/mt MoM.

It is expected that alumina market in Southwest China will be in a tight balance. In terms of bauxite, SMM understands that current bauxite production and shipment are normal, and the probability of political unrest is expected to be reduced. SMM predicted that domestic alumina prices may edge down amid downstream wait-and-see mood and some traders’ sell-off. Market players will be advised to pay attention to alumina production and Yunnan-based aluminium production reduction.