Preview [selected by SMM Weekly] domestic alumina is gradually bottoming out with falling overseas prices

Published: Apr 11, 2020 12:14

"SMM Aluminum Industry chain Weekly report", the weekly report SMM will select one of the hot topics, prices, market or major changes in the industry chain information published for your reference.

The following is an excerpt from the weekly report of the SMM aluminum industry chain:

The price of alumina was 2121 yuan / ton on April 10, falling 84 yuan / ton during the week. During the week, the quotations of traders in southwest and northern regions continued to decline, but there were very few inquiries from electrolytic aluminum plants, and the latest transactions and quotations in Shanxi were as low as 2050-2100 yuan per ton.

The operating capacity of domestic alumina this week is basically the same as that of the previous week. Within the week, there was little quotation in the alumina plant, and the willingness of the holder traders to dump the goods was strong, but the buyer inquired less, and only a small number of traders purchased in small batches, so the market transaction and quotation center of gravity moved further down, approaching the price of imported alumina. Since April, the alumina import window has opened again, and the import profit level is around 100% 120 yuan / ton. With the continuous decline of alumina prices, the operating capacity of alumina in Shanxi, Henan and Chongqing has basically entered the stage of comprehensive loss of cash flow. It is expected that there will be a high probability of production reduction in the near future. We need to continue to pay attention to the impact of narrowing on the supply side on the balance of supply and demand, or will help alumina prices to the bottom.

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Current issue of "SMM Aluminum Industry chain Weekly report" catalogue

Main points of this issue of Weekly report

1. The backlog of orders to support the downstream processing of aluminum to stabilize the new export order fault is worrying in the future.

2. Domestic alumina is gradually bottoming out with falling overseas prices

3. Inventory falls sharply, spot maintains rising water, Guangdong and Shanghai price difference fluctuates in a narrow range

4. Supply increases, inventories rise, aluminum bar processing fees peak and fall back.

5. Aluminum price stabilizes center of gravity moves up waste aluminum maintains low fluidity

6. Poor demand, Price continues to fall, recycled Aluminum Industry faces weak supply and demand

7. The downward trend of silicon price is unstoppable

8. Price of prebaked anode continues to bear pressure

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"SMM China Aluminum Industry chain High-end report" includes: macro hot spots, alumina, electrolytic aluminum, waste aluminum, aluminum accessories, aluminum, waste aluminum pre-baked anode analysis, the scope of the spot market, futures, inventory market performance and aluminum processing start-up rate research, and focus on real-time LME, SHFE and SMM prices. "View details

"SMM China Aluminum Industry chain conventional report" includes: macro hot spots, alumina, electrolytic aluminum, waste aluminum, pre-baked anode analysis, the scope of the spot market, futures, inventory performance and other trends and related news, and focus on real-time LME, SHFE and SMM price dynamics. "View details

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.

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