SHANGHAI, Mar 24 (SMM) - Recently, transportation in Binzhou, Jiaozuo and some other regions in north China has been hindered by COVID containment measures, which tightened the spot supply of raw materials and alumina and led to regional imbalance of supply and demand. A large amount of new alumina capacity in south-west China has been put into operation, and the local alumina prices are unlikely to rise unless exports increase significantly.
Bullish factors: The regional imbalance between supply and demand; widening price difference between China and overseas has boosted alumina exports.
Bearish factors: new alumina capacity will be released on a large scale in early April. With both positive and negative factors in play, the future alumina prices will wait for guidance from large-scale transactions.
The SMM weighted alumina index stood at 2,963 yuan/mt yesterday, from the previous day. Alumina prices were stable across Shandong, Henan, Shanxi, Guangxi, and Guizhou, but rose 125 yuan/mt in Bayuquan, Liaoning.
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The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.
