SMM Morning Comment: Alumina Operating Rate Rises, Spot Prices Decline Further

Published: Jan 20, 2025 09:06

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SMM Morning Comment on Alumina: Recently, the weekly operating rate of alumina has continued to increase slightly, with no significant changes on the demand side. Low-priced spot transactions have been frequent in the market, and the decline has widened compared to earlier periods. In Henan, the spot transaction price was 4,050 yuan/mt this Thursday, down 830 yuan/mt from last Thursday's price of 4,880 yuan/mt. However, as of now, alumina capacity has not yet entered a large-scale loss-making state. It is expected that the short-term operating rate of alumina supply will remain high, with the supply and demand fundamentals maintaining a slight surplus. Overall, spot alumina prices are expected to continue their downward trend in the short term. Close attention should be paid to bauxite transaction prices, alumina costs, and overseas spot alumina prices in the near future.

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