Shanghai Metal Market
China’s alumina prices stop sliding on cost support
Edited by : AL CIRCLE
1 min read
China’s alumina prices have stopped sliding on cost support after having trended down for the past two years due to oversupply, making imports attractive.
Shanghai Metals Market (SMM)’s alumina prices have held between 2,260-2,550 yuan ($368-415) per tonne in the past month or so, comparing to 2,500-2,600 yuan per tonne a year ago.
Domestic alumina prices are unlikely fall any more due to cost support, even though output continues to grow, according to SMM’s research team.
In addition, due to cash flow problems, aluminium producers are inclined to buy the raw material from traders so they can delay payments. As traders ask higher prices than alumina producers, transaction prices tend to be bid higher.
At the same time, FOB prices of Australian alumina are down more than 10% from this year’s high to around $312.5 per tonne lately. Therefore, SMM expects China’s imports of alumina to rebound in the fourth quarter.
The country’s alumina imports fell 37.7% year-on-year to 2 million tonnes in the first eight months, customs data shows.
Shanghai Metals Market (SMM)’s alumina prices have held between 2,260-2,550 yuan ($368-415) per tonne in the past month or so, comparing to 2,500-2,600 yuan per tonne a year ago.
Domestic alumina prices are unlikely fall any more due to cost support, even though output continues to grow, according to SMM’s research team.
In addition, due to cash flow problems, aluminium producers are inclined to buy the raw material from traders so they can delay payments. As traders ask higher prices than alumina producers, transaction prices tend to be bid higher.
At the same time, FOB prices of Australian alumina are down more than 10% from this year’s high to around $312.5 per tonne lately. Therefore, SMM expects China’s imports of alumina to rebound in the fourth quarter.
The country’s alumina imports fell 37.7% year-on-year to 2 million tonnes in the first eight months, customs data shows.
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