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29 MAY 2018 AL CIRCLE

China's domestic alumina price estimated to register sharp fall in late June on low stockpiling

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Shanghai Metal Market anticipated yesterday on May 28, 2018, that domestic alumina prices in China are going to witness a limited decline on the face of continual low stockpiling that allows sellers to hold their offers firm. Since the beginning of May, China’s domestic alumina prices have fallen RMB 70 per tonne.

SMM also believes that the end of June is more likely to mark a sharp fall in domestic alumina prices as continuous declines in international prices would close the windows for exports, and new alumina capacity will come online in July.

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On top, alumina accumulated across ports in Guangxi province as package removal causes pollution and alumina producers are most likely to complete their deliveries of existing orders by late June.

According to SMM, alumina price for four regions in China hovered at RMB 3065 per tonne on Monday, May 28, while the fob Australia price was US$ 472 per tonne. It is assumed that market talk of production resumptions at Hydro’s Alunorte have accelerated the price decline.

In this background, alumina price plunged today, on May 29, 2018, to close at RMB 3061 per tonne, after showing a restraint at RMB 3065 per tonne from May 22 to May 28, 2018. Prior to that, alumina spot price hovered at a slightly higher level RMB 3094 per tonne on May 21 and RMB 3118 per tonne from May 3 to May 18.

The table below shows the alumina price movement in the month of May.

In east, central and south, alumina spot price registered no change today, on May 29, but in the north, it marginally plunged from RMB 3050 per tonne to RMB 3040 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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