SHANGHAI, Jul. 29 (SMM) – The FOB price of West Australian alumina fell to USD 316.5/mt last week, down USD 2.5/mt on a weekly basis and the lowest level since last September.
The price decline was due largely to falling LME aluminum prices and sagging demand from China.
First, LME three-month aluminum contract prices fell to USD 1,850/mt in July, close to levels seen in September 2012.
Second, China’s Australian alumina imports fell in June and H1. China imported only 1.63 million mt of Australian alumina in H1, 2013, down 24% YoY. Slackening demand from China weighted Australian alumina prices down.
Depressed LME aluminum prices and weak demand from China will undermine any potential towards an immediate rally in Australian alumina prices.