Potential Surplus from Aluminum Capacity Cuts to Weigh on Alumina Prices, SMM Warns

Published: Jul 17, 2017 16:17

Save

Massive aluminum capacity cuts might trigger oversupply in alumina market in the short term and thus put downward pressure on alumina prices, SMM expects.

SHANGHAI, Jul. 17 (SMM) – Massive aluminum capacity cuts might trigger oversupply in alumina market in the short term and thus put downward pressure on alumina prices, SMM expects.

Tug-of-War between Australian Alumina Suppliers and Chinese Buyers, SMM Reports

Weiqiao Group cut aluminum capacity by 480,000 tonnes last week, and it is said Shandong will slash aluminum capacity by 2 million tonnes. The government may take a tougher attitude toward capacity cuts than expected, boding ill for alumina market, SMM explained.

Profit Expands Sharply at Chinese Aluminum Smelters, SMM Says

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

Alumina prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

12 hours ago

February Primary Aluminum Billet Operating Rates Hit a Nearly Four-Year Low [SMM Analysis]

[SMM Analysis: February Operating Rate of Primary Aluminum Billets Hit a Nearly Four-Year Low, Expected to Recover to Peak-Season Levels Seen in the Same Period in Previous Years in March] According to SMM statistics, the operating rate of aluminum billets in February fell sharply by 9.2 percentage points MoM to 41.4%, down 7.7 percentage points YoY. After aluminum prices surged to a record high at the end of January, they saw a sharp correction ....

12 hours ago

16 hours ago

Middle East Conflict and Trade Barriers Halt Aluminum Plate, Sheet, Strip, and Foil Exports

Among them, the Gulf region was an important consumer market for China in the Middle East: China’s exports of aluminum plate/sheet and strip to Saudi Arabia reached 42,500 mt, and aluminum foil 58,000 mt; exports of aluminum plate/sheet and strip to the UAE reached 103,500 mt, and aluminum foil 93,800 mt; the other four countries (Bahrain, Qatar, Kuwait, and Oman) accounted for combined exports of about 22,000 mt of aluminum plate/sheet and strip and about 11,000 mt of aluminum foil.

16 hours ago

19 hours ago

US Inflation Rises 0.3% in February, Matching Expectations; Fed Rate Cut Timing Unclear Amid Iran Oil Crisis

The latest US inflation data has been released, showing that seasonally adjusted CPI in February rose 0.3% MoM and was up 2.4% YoY; core CPI increased 0.2% MoM and rose 2.5% YoY, with all figures in line with market expectations. However, the prevailing market view is that the February data has not yet reflected the impact of the sharp rise in oil prices caused by the situation in Iran. Therefore, further data is still needed to support judgment on when the US Fed will cut interest rates again.

19 hours ago