SMM Brief: Spot Alumina Prices Decline Rapidly, Bauxite Market in Negotiation

SMM, January 16:

SMM Brief Comment: Recently, spot alumina prices have accelerated their decline. On Thursday this week, 5,000 mt of spot alumina was transacted in north-west China, with the transaction price equivalent to an ex-factory price of approximately 3,800 yuan/mt in Shanxi. This price roughly corresponds to the cash cost of producing alumina in parts of Shanxi and Henan using Guinean ore priced at $100/mt. Alumina refineries have significantly reduced their willingness to accept high-priced bauxite recently. Bauxite suppliers have lowered their offers, but no new bauxite bulk transactions have been reported so far. Currently, the bauxite market remains in a state of negotiation between upstream and downstream players.