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08 JANUARY 2018 AL CIRCLE

Alumina drops at South China market, prebaked anode on downward trend

EDITED BY : BEETHIKA BISWAS 2MINS READ

Spot Alumina prices have registered mixed momentum in China today. Average spot alumina price in China has registered a small drop to stand at RMB 2854 per tonne today. In the four domestic alumina market, average price stands at RMB 2825 per tonne, registering a slight increase. In South China market alumina drops to RMB 2830 per tonne along with the drop in primary ingot price. Only in North China market, prices registered some rise.

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As seen by Platts analysis, near-term expectations are mixed. Some market participants see higher levels on the back of potential restocking ahead of the Lunar New Year in February, while others expect lower ranges as aluminium is expected to stay weak because of growing inventory, which is expected to reach record high in February.

This would keep alumina price to fall further to cost levels of around RMB 2,400-2,500/t or RMB 2,500-2,600/t, as quoted by domestic smelters.

Prebaked anode prices have dropped substantially in all major markets driven by the ease of restrictions on coal imports by China. According to sources, China has quickened the customs clearing process dampening record high domestic prices for coal as cheaper foreign supply lands at ports. Following figure shows the fall in prebaked anode price in different domestic price today.

Bauxite and cryolite prices register no change today in the China market. With the fall in major raw material prices and higher inventory, aluminium prices in China see no strong support in the near term. 

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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