Non-Chalco Alumina Prices May Further Slide in Coming Weeks

BEIJING, May 13 -- The average domestic spot price of alumina  from  Chinese  producers  other  than  the state-owned Aluminum Corporation  of  China Co. Ltd. (Chalco) has dropped by RMB 135 ($19.79) per ton,  or  6  percent,  since  the  beginning  of May, and prices are expected  to  fall  further due to weak demand, an industry analyst told Interfax on May 11.

    "Non-Chalco  alumina producers have slashed alumina prices on average by RMB 135  ($19.79) per ton to between RMB 2,180 ($319.55) per ton and RMB 2,230 ($326.88)  per  ton  over  the past week up to May 11, and alumina prices are  expected to continue the downward trend in the coming weeks, as purchases  by  aluminum  smelters  remain  weak and they refrain from stockpiling  raw  materials,"  Shan  Guibin,  an  industry  analyst with ChinaCCM.com, said.

    However,  Zhang Xin, an industry analyst with CBI China, also attributed the recent  fall in non-Chalco spot alumina prices to increased sales of imported  alumina.  "Some  imported alumina is being sold at prices that are similar or even below the current average non-Chalco alumina price," he said.

    According to ChinaCCM.com, the prices of imported alumina at Qingdao and Lianyungang  ports  stood  between  RMB  2,200 ($322.49) per ton and RMB2,300 ($337.14) per ton on May 11.

    Shan said  non-Chalco  alumina  prices  will  be supported by production costs, which  stand  between  RMB  1,800 ($263.85) per ton and RMB 1,900($278.51) per ton.

    Chalco's spot alumina price was RMB 2,300 ($337.14) per ton on May 11.

    (Source: INTERFAX-CHINA)