Will 1.8 Million-tpy Alumina Capacity Closure in Shanxi Lift Prices?

SHANGHAI, Mar 24 (SMM) - Recently, transportation in Binzhou, Jiaozuo and some other regions in north China has been hindered by COVID containment measures, which tightened the spot supply of raw materials and alumina and led to regional imbalance of supply and demand.

A series of positive factors will support further rise in alumina prices in China, SMM foresees.

Alumina prices in China have been rising for weeks and more gains are on the way, SMM predicts.

Alumina prices in China, which had been mired in downward track over the past few months, will not turn any worse in the second half of the year, SMM expects.

Yunnan Aluminum Co. has set an ambitious goal of bringing its self-sufficiency rate of alumina to 100% by 2020, Tecent Finance reported.

Shandong Binzhou Beihai Company put its large alumina project into operations in Shandong recently, the China Nonferrous Metals Industry Association (CNIA) said in its website.

Alumina supply in China will gradually shift into a small surplus with release of new and restarted alumina capacity in May, SMM foresees.

Chalco Shanxi Huaxing Aluminum Co. brought online its phase two alumina project in Shanxi province on April 12, Chalco said on its website.

Continuous price recovery has triggered restart of idled capacity and commissioning of new capacity in Chinese aluminum market.

Idled alumina capacity in China is unlikely to come back online on a large scale, despite recent price rise, SMM expects.