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Futures Market: Overnight, the most-traded al2509 futures contract opened at 2,707 yuan/mt, with a high of 2,707 yuan/mt, a low of 2,686 yuan/mt, and closed at 2,700 yuan/mt, down 7 yuan/mt or 0.24%, with open interest at 299,000 lots.
Ore: As of May 7, the SMM Import Bauxite Index stood at $78.24/mt, down $0.32/mt from the previous trading day, mainly due to some lower quotes in the market. Meanwhile, the buyer's target price was below $75/mt, with some enterprises reporting target prices below $70/mt. The SMM Guinea Bauxite CIF average price was reported at $77/mt, unchanged from the previous trading day. The SMM Australia Low-Temperature Bauxite CIF average price was at $80/mt, also unchanged, while the SMM Australia High-Temperature Bauxite CIF average price was at $72/mt, unchanged as well.
Industry News:
Spot-Futures Price Spread Daily Report: According to SMM data, on May 7, the SMM Alumina Index had a premium of 202 yuan/mt against the latest transaction price of the most-traded contract at 11:30 a.m.
Warrant Daily Report: On May 7, the total registered alumina warrants decreased by 323 mt from the previous trading day to 259,700 mt. In Shandong, the total registered alumina warrants remained unchanged from the previous trading day at 601 mt. In Henan, the total registered alumina warrants decreased by 1,200 mt from the previous trading day to 3,001 mt. In Guangxi, the total registered alumina warrants decreased by 2,701 mt from the previous trading day to 27,900 mt. In Gansu, the total registered alumina warrants decreased by 1,198 mt from the previous trading day to 16,800 mt. In Xinjiang, the total registered alumina warrants increased by 4,776 mt from the previous trading day to 211,400 mt.
Overseas Market: As of May 7, 2025, the FOB Western Australia alumina price was $348/mt, with an ocean freight rate of $20.50/mt. The USD/CNY exchange rate selling price hovered around 7.24. This price translates to approximately 3,097 yuan/mt at major domestic ports, which is 201 yuan/mt higher than the domestic alumina price. The alumina import window remained closed.
Summary: With the commissioning of new capacity and the resumption of production from maintenance, the operating capacity of alumina has rebounded significantly. In the final week before the holiday, the weekly operating capacity increased by 3.48 million mt/year on a WoW basis. In the short term, some alumina refineries have plans for maintenance and production cuts, but at the same time, new alumina capacity will further ramp up production, and the operating capacity of alumina may exhibit slight fluctuations. On the cost side, caustic soda prices have remained largely stable overall, while bauxite prices have decreased, leading to a pullback in alumina costs and alleviating the loss pressure on alumina refineries. Overall, the tightening of spot alumina supplies caused by the concentration of maintenance and production cuts in the early stage is expected to ease, and short-term prices are expected to fluctuate.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make cautious decisions and should not rely on this information to replace their own independent judgment. Any decisions made by clients are not related to SMM.]
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