
Alumina prices have seen another drop today continuing the trend that started in November second week after the starting of winter capacity cut. From RMB 3730/t in the beginning of November spot average alumina price has dropped to RMB 2918/t, registering a drop of about 22%. The price drop was mostly driven by slow demand from the aluminium smelters due to capacity reduction. The price drop has been huge compared to November and is slightly lower than the price on the same day one year ago, which was RMB2967/t. The price drop in the individual markets in China are shown in the table below:

Imported alumina prices also have dropped to RMB 3450/t (USD 522/t) today after remaining strong at USD 3600/t since the first week of December. Domestic alumina prices have retracted to RMB 2915/t from RMB 2975/t. Despite the drop in domestic prices, Chalco alumina prices remain unchanged at RMB 3320/t.
Other raw materials like bauxite dropped slightly in Henan and Shanxi and prebaked anode remained unchanged despite the rise in coal prices.
A00 ingot prices saw some increase to stand at RMB 14,180/t. Spot discount remained 230-190 yuan/mt. Aluminium price is expected to rangebound under pressure at 20-day moving average. Recommend multiple short-term orders with small volume at low price.
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