Weekly Operating Rate of Alumina Rebounded Slightly, While the Price Center of Spot Transaction Continued to Drop Back Slightly [SMM Weekly Review]

Published: Jan 2, 2025 17:43

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[SMM Weekly Review: Weekly Alumina Operating Rate Rebounded Slightly, Spot Transaction Price Center Continued to Drop Back Slightly] Recently, the weekly operating rate of alumina rebounded slightly, and alumina supply increased slightly. With the technological transformation and production cuts in aluminum smelters in Guangxi, Sichuan, and other regions, alumina demand decreased slightly, and the previously tight alumina supply situation improved compared to earlier periods. By the end of December, the alumina raw material inventory of aluminum smelters rebounded slightly. Downstream restocking and purchasing enthusiasm weakened, and the acceptance of high-priced spot alumina decreased. With reports of some low-price transactions, suppliers showed an increased willingness to sell. In the short term, spot alumina prices are likely to maintain a slight downward trend.

SMM, January 2:

Price Review:

As of this Thursday, the SMM regional weighted index stood at 5,675 yuan/mt, down 50 yuan/mt WoW. Specifically, Shandong reported 5,660-5,720 yuan/mt, down 45 yuan/mt WoW; Henan reported 5,590-5,670 yuan/mt, down 60 yuan/mt WoW; Shanxi reported 5,600-5,700 yuan/mt, down 90 yuan/mt WoW; Guangxi reported 5,680-5,780 yuan/mt, down 10 yuan/mt WoW; Guizhou reported 5,680-5,800 yuan/mt, flat WoW; and Bayuquan reported 5,860-5,940 yuan/mt.

Overseas Market:

As of January 2, 2025, FOB Western Australia alumina prices were $670/mt, with ocean freight rates at $22.45/mt. The USD/CNY exchange rate selling price was around 7.32, translating to an external selling price at major domestic ports of approximately 5,807 yuan/mt, 132 yuan/mt higher than domestic alumina prices. The alumina import window remained closed. No new overseas spot alumina transactions were reported this week.

Domestic Market:

According to SMM data, as of this Thursday, the national weekly operating rate for alumina increased by 0.34 percentage points WoW to 86.27%. Among them, Shandong's weekly operating rate decreased by 0.05 percentage points WoW to 92.11%; Shanxi's weekly operating rate increased by 0.17 percentage points WoW to 77.40%; Henan's weekly operating rate increased by 0.83 percentage points WoW to 70.00%; and Guangxi's weekly operating rate increased by 0.97 percentage points WoW to 93.93%. During the period, spot alumina transaction prices maintained a slight downward trend. This week, aluminum smelters in Xinjiang tendered for some spot alumina, with reported transaction prices at 5,740-5,770 yuan/mt delivered to Xinjiang. Additionally, an aluminum smelter in Xinjiang purchased 2,000 mt of spot alumina at a transaction price of 5,750 yuan/mt delivered to Xinjiang, sourced from Shanxi and Henan. In Qinghai, an aluminum smelter purchased 15,000 mt of spot alumina at a transaction price of 5,880 yuan/mt delivered to Qinghai. In Henan, 2,000 mt of spot alumina were transacted at an ex-factory price of 5,530 yuan/mt. In Shanxi, 2,000 mt of spot alumina were transacted at an ex-factory price of 5,400 yuan/mt. In Guangxi, 1,600 mt of spot alumina were transacted at a price of 5,580 yuan/mt.

Overall:

Recently, weekly operating rates for alumina showed a slight rebound, with a slight increase in alumina supply. Meanwhile, alumina demand slightly declined due to technological transformations and production cuts in aluminum smelters in Guangxi, Sichuan, and other regions. The previously tight alumina supply situation has improved. By the end of December, aluminum smelters' alumina raw material inventories slightly rebounded, while downstream restocking and purchasing enthusiasm weakened. Acceptance of high-priced spot alumina decreased, and with reports of some low-price transactions, suppliers' willingness to sell increased. In the short term, spot alumina prices are expected to maintain a slight downward trend.

Source: SMM

》Click to View the SMM Aluminum Industry Chain Database

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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