SHANGHAI, May 23 (SMM) – Falling supply triggered by recent production cuts and a pickup in demand have allowed alumina prices in China to stage a rally after continuous declines, SMM understood.
The average alumina price in domestic four major markets climbed from 2,280 yuan/tonne to 2,300 yuan/tonne in the week ending May 21.
As of May 18, about 3.82 million tonnes of alumina capacity had been cut or under maintenance, accounting for 5.0% of total existing capacity, SMM statistics showed.
However, it’s worth noting that producers that cut output or conducted maintenance due to environmental issue will resume production once environmental protection checks end at the end of May. In this context, alumina prices should hover at lows in the near term, SMM expects.
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