Alumina price touches two-year high at US$351/t in 2016

<p>Alumina prices, buoyed by the China factor, climbed significantly to touch US$351 per tonne in 2016- the highest in the last two years. The price escalation which started in January 2016, after a few months' initial volatility, picked up momentum from August onward. Since then, the commodity price has been rising exponentially. <br /><br />China is viewed as the prime factor responsible for this buoyancy though no fundamental alumina shortfall has been reported in the country unlike in late-2014. In fact, the uptick in price caused Chinese alumina output to surge in October and November such that alumina supply in the domestic market was in surplus by almost 150kt in November. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Alumina%20price.png" alt="News" width="517" height="226" /><br />Currently, a regional tightness is being observed in China with transport constraints obstructing delivery of alumina from Shanxi refineries in particular. Plus, demand for alumina has been on the higher side as wary smelters are rushing to stock up the raw material ahead of winter when transport issues might worsen. This tightness in alumina supply has allowed the refiners to pass on the increasing cost from higher coal prices. <br /><br />{googleAdsense}<br /><br />Analysts expect smelter destocking in China this January and February will allow alumina price rise to easy. According to the commodities forecast, the alumina price will moderate to an average of US$310per tonne in first quarter of FY2017.</p>