Political Turmoil in Guinea Adds Fuels to Inflated Alumina Prices, with Gains of Over 33% so Far This Year
SHANGHAI, Sep 6 (SMM) – The average SMM spot alumina prices stood at 3,119 yuan/mt on September 6, a new high since May 29, 2019 and gaining as much as 33.4% so far this year. Prices surged by more than 300 yuan/mt last week amid news of production restrictions. Today’s price increase was driven by political turmoil in Guinea.
SMM believes that alumina prices in north China will remain high in the short term on cost support. However, it remains to be seen how long will alumina prices in south China be held at current high levels, given the limited output cuts in Guangxi.
In the overseas market, one deal was done at $410/mt FOB India, for shipment to Iran, up $90/mt from the previous transaction. The Gramercy plant, which was shut down recently due to a hurricane, planned to resume production this week and gradually increase operating rate from 80% to 100% in the future. The Jamalco and Alumar plants, which closed earlier, have not announced plans to resume production. Overseas supply is unlikely to recover quickly, keeping overseas prices at highs in the short term.