SHANGHAI, Jan 3 (SMM) - Price review: As of last Friday, the SMM weighted alumina index stood at 2,927 yuan/mt, flat from a week ago. The prices stood between 2,860-2,960 yuan/mt in Shandong, 2,920-3,000 yuan/mt in Henan, 2,940-2,990 yuan/mt in Shanxi, 2,800-2,900 yuan/mt in Guangxi, 2,810-2,870 yuan/mt in Guizhou, and 2,880-2,980 yuan/mt in Bayuquan.
Overseas market: The quotations were unchanged from a week ago at $330/mt FOB Western Australia last Friday, equivalent to 2,905.33 yuan/mt CIF major ports in China, which was 21.55 yuan/mt lower than the domestic spot prices.
Domestic market: The market was relatively quiet last week, with quotations little changed. The mainstream prices stood between 2,860-3,000 yuan/mt in north China as of last Friday, versus 2,800-2,900 yuan/mt in south China. With COVID spreading rapidly across the entire country, bauxite mining activities and caustic soda shipments were disrupted to varying degrees. The employees of some alumina refineries also tested positive for COVID. Although the pandemic has not yet dealt a substantial blow to alumina production for now, many refineries have postponed their plans to resume production or put new projects into operation. The operating alumina capacity in China stood at 76.6 million mt/year at the end of December, barely changed from the end of November. Alumina supply in the spot market remained tight. Aluminium smelters have basically completed their stocking plans, with little extra need for purchasing from the spot market before the Chinese New Year. In the run-up to the Chinese New Year, alumina refineries and aluminium smelters will focus on their long-term orders.
Price evolution: Smelters and traders gradually suspended their business due to year-end financial settlement, causing the trading activities to decline further last week. Alumina prices are expected to remain flat this week.
