Supply Shock Weigh Down Alumina Prices In North China, While Prices In South China Temporarily Hold Stable

SHANGHAI, May 29 (SMM) – Price review: The SMM weighted alumina index stood at 2,861 yuan/mt as of last Friday, down 14 yuan/mt from a week ago. The prices stood between 2,840-2,890 yuan/mt in Shandong (down 30 yuan/mt), 2,910-2,950 yuan/mt in Henan (down 15 yuan/mt), 2,830-2,880 yuan/mt in Shanxi (down 20 yuan/mt), 2,750-2,810 yuan/mt in Guangxi, 2,800-2,860 yuan/mt in Guizhou, and 2,950-3,000 yuan/mt in Bayuquan.

Alumina prices in north China generally fell, while those in south-west China were largely stable. As the ramp-up of new alumina capacity in Hebei and Shandong has exacerbated supply glut in north China, local suppliers were bearish and cut offers. Maintenance by a large alumina refinery in Chongqing and some refineries in Guizhou has counteracted supply shock from the commissioning of new capacity in Guangxi. Aluminium smelters in Guizhou and Sichuan continued to resume production, and local alumina refineries made shipments mainly under long-term contracts.