Supply And Demand Shock to Expose Alumina Prices to Downward Corrections

 SHANGHAI, Feb 9 (SMM) – The Chinese alumina market performed well last month amid a series of bullish factors, such as abrupt output cuts, lucrative profits of downstream smelters, high cost and slow release of supply.

However, alumina prices could face downside risks soon as supply is picking up while demand is expected to drop. Some alumina refineries in Guizhou and Shanxi may resume production this month. Hebei Wenfeng’s new production line will yield output soon. Potential output cuts by aluminum smelters in Yunnan threaten to weigh on alumina demand.