SHANGHAI, May 28 (SMM) – While China’s domestic alumina prices have fallen 70 yuan/mt since the start of May, SMM sees limited declines in the short term as low stocks will continue to allow sellers to hold offers firm.
However, we believe that prices are likely to fall sharply at the end of June as continuous declines in international prices have closed the window for exports, and new alumina capacity will come online in July.
Alumina accumulated across ports in Guangxi province as package removal causes pollution. Alumina producers will have completed deliveries of existing orders by late June.
SMM’s alumina price for four major regions in China stood at 3,065 yuan/mt on Monday May 28, while the fob Australia price was $472/mt. Market talk of production resumptions at Hydro’s Alunorte refinery accelerated the price decline.
This is an excerpt of China Aluminium Weekly to be published on Monday May 28.
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