Alumina Prices in North China Underpinned by High Costs and Supply Constraints, While Prices in South China at Risk of Further Decline amid Demand Shock

SHANGHAI, Feb 21 (SMM) – As the heating season has not ended, alumina production in north China, such as Shandong and Hebei are still constrained. High costs dampened the production passion of alumina refineries in Shanxi and Henan. Hence, supply in the north was relatively tight, supporting local prices.

Roughly 800,000 mt of aluminium capacity in Yunnan will be cut within 10 days to combat power shortages, commencing this week. This will threaten 1.6 million mt of alumina demand and weigh on alumina prices in south-west China.