SHANGHAI, Jun. 17 (SMM) – The average SMM alumina price has fallen from May’s RMB 2,514/mt to current RMB 2,473/mt, but the average price for long-term alumina contracts has risen from May’s RMB 2,482/mt to current RMB 2,526/mt. Prices of imported alumina at ports have slipped from RMB 2,654/mt in May to current RMB 2,600/mt, but are still at a price disadvantage over domestic materials.
Two reasons were behind the decline in domestic alumina prices. First, growing production cuts at aluminum smelters cut into demand for alumina. Second, commissioning of new alumina capacity created an overhang of alumina. These two factors intensified competition among producers, weighing down alumina prices. Spot aluminum prices inched up in June, but this failed to bolster alumina prices appreciably.
SMM understands that alumina prices will not rebound until new aluminum capacity comes online and unless aluminum prices maintain upward momentum.