Alumina prices rebound slightly; Nalco projects slow increase in alumina prices in near term

<p>After a period of flat run, China&rsquo;s domestic alumina price rebounded on August 17, driven by an outlook on tightened supply. The average spot alumina prices expected to range between RMB &nbsp;2506 &ndash; 2506/t. The tightness in the market is expected because Alumina production in Shanxi province has been affected by suspension of some bauxite mines in Shanxi and Henan provinces on environmental regulations.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Alumina_powder.jpg" alt="News" width="517" height="226" /></p> <p>China Aluminium International Trading, the wholly owned subsidiary of Aluminium Corp of China (Chalco), published a public tender to purchase 90,000 tonnes of alumina, strengthening market anticipation of tightened supply in the nearby market.</p> <p>Australian Alumina FOB prices rose timidly in recent weeks as market participants tempered their expectations that China would comply with the announced cuts to illegal aluminium capacity.</p> <p>While global aluminium prices trade at multi-year highs on China&rsquo;s efforts to cut illegal capacity on stricter environmental and policy regulations, the leading alumina exporter from India is Nalco is still positive about alumina demands in the near term.</p> <p>{googleAdsense}</p> <p>In an interview to CNBC-TV18, TK Chand, CMD of NALCO said that alumina prices are currently subdued because of the news of aluminium capacity cut and slow demand in China.</p> <p>He expects Nalco&rsquo;s alumina production to be in surplus in coming fiscal. He however, expects alumina prices to move up by another USD 10-15 in the near term. He also expects higher prices of caustic soda to support aluminium prices. The company expects to make profitable business in alumina segment in the coming fiscal.&nbsp;</p>