Operating Capacity of Alumina Rises Again, Spot Alumina Prices Pull Back [SMM Alumina Weekly Review]

SMM News on June 12:

Price Review:

As of Thursday this week, the SMM alumina index stood at 3,259.99 yuan/mt, down 13.74 yuan/mt from last Thursday. In Shandong, prices were reported at 3,210-3,300 yuan/mt, down 5 yuan/mt from last Thursday; in Henan, prices were at 3,250-3,350 yuan/mt, down 5 yuan/mt from last Thursday; in Shanxi, prices were at 3,230-3,300 yuan/mt, down 25 yuan/mt from last Thursday; in Guangxi, prices were at 3,250-3,320 yuan/mt, down 5 yuan/mt from last Thursday; in Guizhou, prices were at 3,250-3,350 yuan/mt, unchanged from last Thursday; in Bayuquan, prices were at 3,210-3,290 yuan/mt.

Overseas Market:

As of June 12, 2025, the FOB Western Australia alumina price was $370/mt, with an ocean freight rate of $22.00/mt. The USD/CNY selling rate hovered around 7.20. This price translates to an approximate external selling price of 3,269 yuan/mt at major domestic ports, which is 9 yuan/mt higher than the domestic alumina price, leading to the closure of the alumina import window. No new overseas spot alumina transactions were inquired about this week.

Domestic Market:

According to SMM data, as of Thursday this week, the total installed capacity of metallurgical-grade alumina nationwide was 110.82 million mt/year, with a total operating capacity of 89.01 million mt/year. The national weekly alumina operating rate rose by 1.57 percentage points WoW to 80.32%, mainly due to the resumption of production at some alumina facilities that had undergone maintenance or production cuts earlier. In Shandong, the weekly alumina operating rate remained unchanged from last week at 88.07%; in Shanxi, it rose by 4.57 percentage points WoW to 75.17%; in Henan, it remained unchanged from last week at 60.00%; in Guangxi, it remained unchanged from last week at 94.58%.

During the period, spot alumina transactions were sluggish. Only a few tender prices for alumina procurement by aluminum smelters were reported in the market, with the winning bid prices showing a significant discount to the online prices, driving down alumina prices in north China.

Overall:

This week, the operating capacity of alumina rose by 1.74 million mt/year WoW to 89.01 million mt/year. Spot alumina supplies were relatively looser compared to the previous period. The total inventory of alumina at aluminum smelters increased by 16,000 mt this week to 2.646 million mt. In the short term, the alumina market fundamentals are expected to remain relatively loose, and spot alumina prices are expected to pull back. Continuous attention should be paid to the capacity changes of domestic alumina enterprises and the supply of imported alumina in the future.

Source: SMM

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