Steel Guru
China alumina imports drop due to higher prices
Edited by : AL CIRCLE
2 min read
Interfax-China reported that higher alumina prices overseas weighed on China’s imports of the aluminum ingredient in August and prices continue to rise on the back production cuts among major global players.
Alumina imports August dropped 31.61% MoM to 35,035 tonnes show customs data released September 21st 2012.
Mr Zhang Chengguang an analyst with SMM Information & Technology attributed the drop to higher prices overseas. The average FOB price for alumina was USD 311 per tonne in July, while in August it climbed USD 8 per tonne to USD 319 per tonne.
Mr Zhang said that "The rising trend has continued in September with many deals in the last two weeks going through at USD 325 per tonne. Adding freight and insurance costs the total would reach CNY 2,700 to CNY 2,800 per tonne higher than domestic price."
Shanxi Province has the lowest domestic price of CNY 2,400 per tonne. Output reductions by major global players contributed to the price rise with both Rio Tinto and Alcoa cutting production of the aluminum ingredient.
A favorable arbitrage window meanwhile saw China’s imports of primary aluminum jump 50.28% on a monthly basis in August to 61,309 tonnes. The London Shanghai price ratio wavered between 1:8.3 and 1:8.4 in July when orders were placed, above the breakeven point of 1:8.
Alumina imports August dropped 31.61% MoM to 35,035 tonnes show customs data released September 21st 2012.
Mr Zhang Chengguang an analyst with SMM Information & Technology attributed the drop to higher prices overseas. The average FOB price for alumina was USD 311 per tonne in July, while in August it climbed USD 8 per tonne to USD 319 per tonne.
Mr Zhang said that "The rising trend has continued in September with many deals in the last two weeks going through at USD 325 per tonne. Adding freight and insurance costs the total would reach CNY 2,700 to CNY 2,800 per tonne higher than domestic price."
Shanxi Province has the lowest domestic price of CNY 2,400 per tonne. Output reductions by major global players contributed to the price rise with both Rio Tinto and Alcoa cutting production of the aluminum ingredient.
A favorable arbitrage window meanwhile saw China’s imports of primary aluminum jump 50.28% on a monthly basis in August to 61,309 tonnes. The London Shanghai price ratio wavered between 1:8.3 and 1:8.4 in July when orders were placed, above the breakeven point of 1:8.
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