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AL CIRCLE

Alumina price sees a hike while alumina output depreciates: SMM update

EDITED BY : 2MINS READ

Alumina output has shrunk in March by 2.4 per cent year-on-year and stood at 5.73 million tonnes in China, while the daily output hovered at 185,000 tonnes, up 1.9 per cent month-on-month, Shanghai Metal Market research found. In the first quarter of the financial year 2017-18, output was at 16.52 million tonnes, down 0.7 per cent from the contemporary period of the previous year.

The cause of decline attributes to the end of winter heating season from November 2017 to March 2018, as some alumina plants across the country have resumed their operations, except for Henan, Jinjiang, East Hope and Wanji.

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However in April, alumina output is estimated to have a slight rise from the past month and attain 5.74 million tonnes. The daily output is apprehended to increase as well to 191,000 tonnes, as compared to 185,000 tonnes in March. This would be primarily due to the recovery of operations for the whole month, as the two major China markets Henan and East Hope are likely to recommence their operations, while the end of roaster renovation at Guizhong Huajin on April 15 would act as a bolster to alumina output further.

This table shows the alumina price change across China

On the face of a decline in alumina output, the average alumina price exhibits an optimistic sentiment with a sharp rise from RMB 2718, from March 29 to April 9, to RMB 2729 per tonne on April 10, 2018. While the price of Alumina-East remains unstable, totalling RMB 2730 per tonne, the prices of Alumina-Central and Alumina-North have jumped from RMB 2710 per tonne to RMB 2725 and RMB 2720 per tonne respectively. Alumina-South price has also witnessed a considerable hike from RMB 2755 to RMB 2765 per tonne.

According to another update from SMM, average A00 aluminium ingot has seen a further rise to RMB14200 per tonne on April 10 218, as opposed to 14080 yesterday. The prices are expected to range between RMB 14180 and RMB 14220 per tonne with spot discounts to settle at RMB 100 to RMB 60 per tonne.

This overall scenario with alumina output decline and alumina price rise indicates active trade in China.  A00 aluminium ingot price adds a further boost to it.


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EDITED BY : 2MINS READ

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