SHANGHAI, May 14 (SMM) – Aluminum Corp of China (Chinalco) raised the floor price of non-metallurgical alumina for the fourth time since April in its latest statement, a source told SMM on Tuesday May 14.
The adjustment brought the floor price of alumina to 3,050 yuan/mt, effective on May 14, following the 2,950 yuan/mt set for May 10, 2,850 yuan/mt for April 26, and 2,750 yuan/mt for April 16.
Environmental inspections in Shanxi province drove local alumina producers to cut output or suspend as of Tuesday May 14, and this accounted for higher floor prices.
SMM lowered its estimates for alumina output across major Chinese producers in May, to 5.97 million mt, which translated to a narrower supply glut of 150,000 mt. The expected monthly oversupply marked the lowest since December of last year.
News around output suspension also bolstered spot prices of alumina. SMM assessed alumina prices at 2,850 yuan/mt as of Tuesday May 14, up from 2,646 yuan/m a month ago.