Metals News
Declines in alumina prices improve aluminium margins in Jul
price review forecast
Jul 16,2019

SHANGHAI, Jul 16 (SMM) – Lower prices of alumina since mid-June improved margins at primary aluminium smelters and narrowed the proportion of aluminium capacity operating under losses to 20.1% in the month to July 15, an SMM survey found. 

SMM assessed the average price of alumina across five major consumption areas in China has dipped to 2,582 yuan/mt as of July 15, with a low under the 2,500 yuan/mt level in northern markets. 

Falling prices of the feedstock reduced costs at primary aluminium smelters, which averaged 13,105 yuan/mt in the first half of July, down 717 yuan/mt from that in June. 

Based on the average price of spot aluminium ingot of 13,739 yuan/mt for the first half of July, SMM assessed that some 29.23 million mt of aluminium capacity was operating with profits, accounting for 79.9% of the total domestic capacity under operation. 

The readings compared with profitable capacity of 15.26 million mt, and 41.8%, respectively in June, based on the average prices of spot aluminium ingot at 13,974 yuan/mt. 

In the first half of July, aluminium capacity with operating costs of 13,000-13,500 yuan/mt made up a major share of the total capacity, at 26.91%. 

SMM expects further downside room in prices of alumina on production resumptions

Market commentary
For queries, please contact Frank LIU at
For more information on how to access our research reports, please email
Related Price

No Data