Domestic Alumina Prices Have Exceeded 4,000 yuan/mt

SHANGHAI, Oct 18 (SMM) - As of October 15, the SMM weighted average alumina price index stood at 4,073 yuan/mt, up 189 yuan/mt or 4.87% from a week ago. The prices stood at 4,050-4,100 yuan/mt in Shanxi and Henan, 4,000-4,050 yuan/mt in Shandong, 3,800-3,850 yuan/mt in Guangxi, and 3,900-3,950 yuan/mt in Guizhou.

A deal for 30,000 mt of alumina was done at $539/mt CIF Qingdao or $541/mt CIF Tianjin, for shipment from Western Australia. SMM did not hear of new alumina capacity being commissioned overseas last week. Jamalco and Alumar have not resumed production. The overseas alumina market is still in a tight balance, which will keep the overseas prices at highs in the short term.

The prices of coal, caustic soda and bauxite have remained high amid tight supply, making it more difficult for alumina refineries to purchase raw materials. Three alumina refineries in Shanxi reduced production last week due to the flood disaster, which is expected to last for 10 days and reduce their output by about 65,000 mt.

The spot inventory in north China is extremely low due to production cuts caused by natural disaster, and the production is likely to be cut further due to raw material shortages and the approaching heating season. The supply in south-west China is relatively ample, but local alumina refineries hold back cargoes. The spot alumina prices will remain at a high level this week, underpinned by supply disruptions and rising costs.

Domestic and imported alumina prices

Source: SMM