Average alumina spot price witnesses a significant plunge across various major Chinese markets

After showing restraint over a long period of time from 3rd of May to 18th of May, 2018, alumina spot market price declined two days in a row. According to Shanghai Metal Market, average alumina spot price, which was hovering at RMB 3118 per tonne until May 18 , 2018 plunged to RMB 3094 per tonne on May 21,  followed by a further shrink to RMB 3065 on Tuesday, May 22, 2018. 

This sudden plunge in alumina price is primarily due to lower demand among consumers and traders and also due to tight supply condition because of  production cut at Norsk Hydro’s Alunorte, the world’s largest alumina refinery.

Prices have dropped across all the major Chinese markets from May 21, 2018. In east, the price dropped from RMB 3160 per tonne to RMB 3140 per tonne on May 21 and then to RMB 3110 per tonne on May 22, 2018. In central, the alumina price dipped by RMB 10 per tonne from yesterday and closed at RMB 3090 per tonne, while in north and south; the price fell from RMB 3090 per tonne to RMB 3050 per tonne and from RMB 3070 per tonne to RMB 3025 per tonne on May 22 respectively.

The table above shows today’s spot alumina price movements (RMB/t) in various markets.

On the other hand, as far as the input costs are concerned such as alloys, bauxite, pre-baked anode and aluminium fluoride, the prices showed no change on May 22 and standing at RMB 15900 per tonne, RMB 430 per tonne, RMB 3425 per tonne and RMB 9800 per tonne respectively.