Imported alumina price falls after China custom data shows fall in import for three months

As reported by SMM, China Customs data shows China's imports of alumina in January fell for three consecutive months and touched a new low of 74,000 tonne since August 2017. This is down 48.6% month on month and 72.3% year on year. Higher imported alumina prices in comparison to domestic producers were largely responsible for the fall in import.

The average imported alumina price for the month of January and February stood at RMB 3450 per tonne (US$545 per tonne). For the period of February 13 to March 13, the monthly average imported alumina price stands at RMB 3393.75 per tonne (US$536 per tonne). Average imported alumina price fell to RMB 3000 per tonne (US$474 per tonne) on March 12; bringing down the average monthly price. Below graph shows the trend in average imported alumina price in last three months.

February import is also expected to remain low considering the Chinese New Year (CNY) holidays and widening profit margins between domestic supplies and imports. Imports in March will be further down in view of the 50% production cut at Hydro’s Alunorte aluminium oxide plant in Brazil which will affect supply of imported alumina.

The fall in imported alumina price came after Chalco reduced its alumina prices by RMB 540 per tonne to RMB 2740 per tonne on March 7 2018.  The winter cuts, climbing aluminium inventory and slow restart of new aluminium capacity are factors that have kept alumina demand low in the last quarter of 2017 and the first quarter of 2018.  Average domestic spot alumina price remains unchanged at RMB 2730 per tonne.