Decline in Overseas Alumina Prices Expanded amid Spillover Effect from Australian Ban on Alumina Exports to Russia

SHANGHAI, Apr 6 (SMM) - Alumina prices FOB Western Australia fell further to $440/mt on April 6, down 8% from April 1. Due to Australia's  ban on alumina exports to Russia, alumina that was originally intended to be sent to Russia flowed into the overseas spot market, easing supply tightness overseas. In the short term, there is still room for overseas prices to correct down.

The latest FOB price Western Australia was equivalent to 3,742 yuan/mt CIF major ports in China. The price difference between China and overseas shrank from 1,500 yuan/mt to around 760 yuan/mt. The narrowing price spread eroded export profits, which coupled with the severe pandemic situation, heightened wait-and-see sentiment among exporters.

The domestic prices were largely stable.  As of March 6, the SMM weighted alumina index stood at 2,982 yuan/mt, up 2 yuan/mt from April 1.