Alumina Market Remains Bearish Amid Supply Shock From New Capacity

SHANGHAI, May 15 (SMM) - The continuous decline in alumina prices was mainly attributed to oversupply. In the first quarter, the domestic alumina market saw only a small surplus of 186,000 mt due to limited release of new capacity and falling imports, which constrained the decline in alumina prices. However, the 3.4 million mt/year of new alumina capacity will exacerbate oversupply in the second quarter, which may force sellers to lower offers. The short-term alumina prices will remain in a downward trajectory.