03 SEPTEMBER 2014Shanghai Metal Market
Alumina prices in China to rise further for H2 2014, SMM expects
Edited by : AL CIRCLE
1 min read
A rising trend is expected to be continuing for the rest of the year due to growing demand and supply tightness, Shanghai Metals Market foresees.
The commissioning of new capacity in Q3 or Q4, delayed by falling prices early this year, and idled capacity resumption will grow demand for alumina, SMM estimates.
Besides, aluminum smelters in northwest China, Xinjiang in particular, will step up raw materials purchases in September to avoid tight railway transporting capacity during winter and holidays. This will also boost market consumption.
In contrast with growing demand, alumina supply will likely tighten during Q3. According to SMM data, this year is expected to see 4,800,000-tpy new alumina capacity. A mere 900,000-tpy new alumina capacity was put online in H1, with the rest slated for operations mainly in Q4.
Alumina producers in Shanxi also echo SMM views, expecting local traded prices to rise to 2,600 yuan per tonne later this year, up 100 yuan per tonne from current offer.
The commissioning of new capacity in Q3 or Q4, delayed by falling prices early this year, and idled capacity resumption will grow demand for alumina, SMM estimates.
Besides, aluminum smelters in northwest China, Xinjiang in particular, will step up raw materials purchases in September to avoid tight railway transporting capacity during winter and holidays. This will also boost market consumption.
In contrast with growing demand, alumina supply will likely tighten during Q3. According to SMM data, this year is expected to see 4,800,000-tpy new alumina capacity. A mere 900,000-tpy new alumina capacity was put online in H1, with the rest slated for operations mainly in Q4.
Alumina producers in Shanxi also echo SMM views, expecting local traded prices to rise to 2,600 yuan per tonne later this year, up 100 yuan per tonne from current offer.
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