SMM Analysis Of Domestic Alumina Market Fundamentals

Domestic market: There was no transaction in Henan this week, and the transaction price in Shanxi fell below 2,900 yuan/mt, and the purchase is still mainly based on rigid demand. Specifically, there were two transactions in the northern market, one of which was 10,000 mt at a price of 2,880 yuan/mt, shipped from Shanxi to Xinjiang, and the other was sold at a price of 2,870 yuan/mt for 15,000 mt from Shanxi to Qinghai. In the southwestern region, there was no transaction in Guizhou and Guizhou this week, and the transaction price in Chongqing was concentrated at 2,880-2,900 yuan/mt. A total of 10,000 mt were sold this week, and they were shipped from Chongqing to northwest China. According to SMM research, domestic alumina production shutdown and production expansion were carried out simultaneously in April, and the operating production capacity was 79.966 million mt, an increase of 2.2% compared with March. In terms of production suspension, an alumina plant in Inner Mongolia has gradually implemented the production suspension plan since April due to various reasons, and the subsequent resumption of production is unknown. In terms of new investment, Hebei Wenfeng Phase IV with capacity of 1.2 million mt and Lubei Chemical Phase II with capacity of 1 million mt began to join the market competition one by one. The excess supply pressure will suppress the price of alumina for a long time.