China’s alumina spot price keeps gaining pace; adds RMB56/t today; SMM aluminium price skyrockets RMB1210/t Y-o-Y

China’s alumina spot price has levitated by RMB 56 per tonne to clock at RMB 3,210 per tonne, whereas the alumina price in Guizhou has gained RMB 85 per tonne to close at RMB 3,200 per tonne. In Henan and Guangxi, the alumina spot prices have jumped up the graph by RMB 70 per tonne, stopping at RMB 3,250 per tonne and RMB 3,200 per tonne, respectively.

In Shanxi, the alumina spot price has added RMB 50 per tonne to close at RMB 3,265 per tonne. Last but not least, in Shandong, the alumina price has secured RMB 25 per tonne to stop at RMB 3,090 per tonne. 

What does the looming crisis in the alumina market mean for the aluminium industry? 

The alumina spot price in China has shown unparalleled growth in 2023’s end, primarily attributed to the Guinea fuel blast on December 18. China has a major share of Guinea’s mining zone, and any discrepancy in the area can affect the imports to China. Alumina is the raw material extracted from bauxite ore, which is fundamental in the production of primary aluminium. 

The Guinea fuel blast has taken many innocent lives and impaired Guinea’s commodity trade dynamics for the time being. This has, in turn, augmented the price of alumina and primary aluminium globally due to a simple imbalance in demand and supply. 

SMM aluminium spot price today 

The SMM aluminium market has shown escalating prices today, with the official price halting at RMB 19,530 per tonne, with a subtle raise of RMB 50 per tonne. The average prices ranged between RMB 19,510 per tonne and RMB 19,550 per tonne. 

If we consider the SMM aluminium price on January 3, last year, we can see a massive Year-on-Year augmentation of RMB 1,210 per tonne or 6.6 per cent. 

Eight Central Provinces in China 

China’s eight major regions have also seen increasing aluminium prices, with aluminium prices rising the highest in Foshan by RMB 70 per tonne and resting at RMB 19,510 per tonne. In Wuxi and Tianjin, the aluminium prices have soared by RMB 60 per tonne, officially settling at RMB 19,540 per tonne and RMB 19,510 per tonne. The aluminium prices in Hangzhou, Shenyang and Linyi have all skipped up by RMB 50 per tonne, halting at RMB 19,530 per tonne, RMB 19,480 per tonne and RMB 19,530 per tonne, respectively. In Gongyi, the aluminium price floated by RMB 40 per tonne to close at RMB 19,390 per tonne. Lastly, in Chongqing, the aluminium price gained RMB 30 per tonne to officiate at RMB 19,480 per tonne. 

Price of other primary materials 

The low-carbon aluminium price in China has inched up by RMB 43 per tonne to finally close at RMB 20,309 per tonne. The prices of aluminium alloy (A356) and aluminium alloy (A360) have grown by RMB 50 per tonne to halt at RMB 20,200 per tonne and RMB 20,450 per tonne, respectively.