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Guangxi’s Alumina Prices Slid to RMB 2,240/Mt in Early July
Jul 10,2013 17:36CST
price review forecast
Source:SMM
Alumina prices in Guangxi fell to RMB 2,240-2,300/mt in early July, down almost RMB 100/mt from early-to-mid June.

SHANGHAI, Jul. 10 (SMM) – Alumina prices in Guangxi fell to RMB 2,240-2,300/mt in early July, down almost RMB 100/mt from early-to-mid June.

Persistently depressed aluminum prices are the major reason behind the decline in alumina prices. Oversupply in Guangxi also contributed to the fall in alumina prices in the region. Guangxi Huayin Aluminum’s alumina output rebounded. Guangxi Tiandong Jinxin Chemical has brought its new 1 million mt/yr in alumina capacity online. Alumina output at Guangxi Xinfa alumina plant and Chalco (Guangxi) has been stable. These brought total alumina capacity across Guangxi to 7.9 million mt/yr. Aluminum capacity in the region, however, is a mere 460,000 mt/yr, with maximum alumina demand at 920,000 mt/yr. The surplus alumina is thus shipped to other regions for sale. Producers are forced to cut offers due to higher freight charges.    

Alumina production costs in Guangxi are lower than other provinces due to abundant and high-quality bauxite there, allowing local producers to cut prices.

Alumina traders and producers in Guangxi are compelled to resort to discounting against tight liquidity and falling aluminum prices. Local alumina producers are bearish over future prices given lackluster downstream demand. 
 

Guangxi alumina prices in July

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