SHANGHAI, Aug. 15 (SMM) – Alumina prices in China have eventually embraced their long-awaited rebound after continuous declines. What triggered the rally and will recent gains prove sustainable?
The rise was actually fuelled by an unexpected red mud dam landslide at Luoyang Xiangjiang Wanji Alumina Plant, which encouraged producers in many regions to raise offers.
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However, rising prices did not boost buying interest, with trading still quite poor.
The accident at the plant, which has a total alumina capacity of 1.4 million-tpy and a backlog of alumina stocks, will have limited impact on alumina market, SMM noted.
The recent price rise will be short-lived, unless demand from aluminum smelters picks up, SMM analyst pointed out.
As of August 11, mainstream traded prices for alumina in domestic major markets were reported between 1,720-1,820 yuan per tonne.
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