Alumina Price Momentum to Wane in China, SMM Sees

SHANGHAI, Feb. 24 (SMM) – Alumina prices in China will sustain gains in the near future on falling output, but momentum is unlikely to be as strong as before, SMM expects. 

China’s alumina output dropped 2.67% month-on-month and 1.58% year-on-year to 4.59 million tonnes in January, SMM statistics showed. Falling production drove a rally in alumina prices in late January, and will give further boost to prices, SMM aluminum analyst Liu Xiaolei predicted. 

However, a lack of demand will soften rising impetus, Liu said. Aluminum smelters will have low interest in restocking for now after hoarding enough stocks earlier, Liu explained.  

SMM alumina weighted average price was 1,660 yuan per tonnne during the first three weeks of February, up 1.46% from January. This was driven mainly by alumina output cuts, as well as stocking by aluminum smelters ahead of the 2016 Chinese New Year holiday.  

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