
In the midst of the announcement of production limit plan during winter heating season, alumina prices are holding strong. Average spot alumina price has registered a gain of RMB 22/t to stand at RMB 3730/t after a flat run for two days. Spot alumina prices have gained in all other individual markets in China. Chalco alumina and imported alumina prices have remained unchanged. the price movements are shown in the below table:

As for other raw materials are concerned, prebaked anode and bauxite prices remain unchanged in all major China markets. Prices of A00 aluminium ingot have registered a slight rise from RMB 16,130/t to stand at RMB 16,150/t today. A00 aluminium ingot prices across all individual markets have also increased consequently.
Aluminium alloy ingot prices also remain flat in all markets.
In another update from SMM, the non “2+26” Lvliang City of Shanxi Province released its production limit plan during winter heating season. The city has directed the alumina enterprises to limit their production by 30%. Those carbon enterprises that fail to reach special emission limit have been asked to suspend production. Producers that have already reached the special limit have been asked to limit production by at least 50%.
Shanxi Province is a large province with a huge alumina capacity and Lvliang City contributes over 50% of total alumina capacity of Shanxi Province. Capacity reduction announcement in this privince is expected to have a significant impact on alumina and aluminium price in China.
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