China’s alumina exports record significant M-o-M decline in February

According to the latest data from China Customs, China’s alumina exports in February came in at 3,443 tonnes, after declining 139,000 tonnes from January. This data represents that China’s alumina exports in January 2019 had pegged at 142,443 tonnes.

{newsStudioGallery}

China Customs data found that alumina exports by China had been declining over a past couple of months. The exports in January were 34,987 tonnes or 20 per cent lower than 177,430 tonnes in December, which again was 37.9 per cent down from 285,696 tonnes in November.

China’s alumina exports in February stood lower not only month-on-month but from a year earlier by 10.5 per cent.

In February 2019, China’s domestic average alumina price was at US$413.78 per tonne while the global average price at US$378.61 per tonne. In January, on the other hand, China’s domestic average alumina price was at US$422.18 per tonne while the global at US$386.86 per tonne. This shows that in both January and February, China’s domestic price of alumina remained higher than the global price, which perhaps discouraged Chinese markets to ship alumina overseas, resulting in lowered month-on-month exports.

Also, the tight alumina supply across the globe eased, as the Trump administration removed sanctions against Rusal in late January. This primarily could be another reason for reduced export orders of alumina from China.

However, China’s alumina export orders were heard to expand in March. But the spread between the domestic and international markets currently standing at US$20-30 per tonne may keep alumina from leaving China.