SHANGHAI, Feb. 3 (SMM) – China imported 4.65 million mt of alumina in 2015, down 11.8% YoY, and imports were 544,100 mt in December 2015, customs data showed. SMM attributes the decline to production cuts at Chinese aluminum smelters, falling prices of domestic alumina after its supply grew, as well as yuan’s depreciation.  

SMM expects China’s demand for imported alumina to surpass 5 million mt in 2016 for two reasons. First, output cuts at Chinese alumina producers will tighten supply of domestic alumina. Second, FOB price of West Australian alumina is just around USD 205/mt at present, and sea freight charges are at multi-year lows. Such low price is still attractive for Chinese aluminum smelters that are located near ports.