Lack of confirmation on proposed smelter cuts keeps spot alumina prices flat in China markets

<p>Spot Alumina prices have remained flat throughout all China markets as there no clarity on the proposed smelter cuts.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/spot%20alumina21.png" alt="News" width="707" height="281" /></p> <p>The average spot alumina prices in South China market and North China markets stand at RMB<strong> 2,490/t</strong> and RMB <strong>2,550/t</strong> respectively on July 21. Market price difference between North China and South China stands at RMB 60/t.</p> <p>For East China and Central China market, average alumina prices settle at RMB<strong> 2,565/t</strong> and RMB <strong>2,550/t</strong>.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/chart%20(24).jpeg" alt="News" width="517" height="226" /></p> <p>Large scale producers are still conservative on their alumina prices. Chalco alumina prices and average imported alumina prices remain flat at RMB 2,650/t and RMB 2,800/t.&nbsp;</p> <p>According to a Platt&rsquo;s report despite the July deadline by Xinjiang authorities, no confirmed aluminium capacity cut has been reported yet.</p> <p>Media reports said cutbacks in the Xinjiang region would reach 600,000-800,000 mt/year from smelters East Hope and Jiarun. However, there is no official confirmation. Market sources also said that Hongqiao may cut around 1 million mt/year of smelter capacity in Shandong, and Xinfa 500,000-600,000 mt/year.</p> <p>Though some sources said that smelter cuts were very likely in near term, many expressed doubt about significant smelter cuts in the near term as the aluminium price is currently moving very firm.</p> <p>{googleAdsense}</p> <p>As SMM sees it alumina supply &amp; demand balance in China will depend on the amount of aluminium capacity in 2017. New aluminum capacity nationwide will exceed 2 million tonnes in H2 2017, and excluding Weiqiao Group, new alumina capacity will be 1.8 million tonnes, SMM estimates.&nbsp;SMM expects total alumina production to increase to 5.9 million tonnes in July.&nbsp;</p> <p>Talking about aluminium, A00 ingot prices have dropped slightly in all the major markets in China today after touching the month&rsquo;s highest on July 20. China Aluminum International Trading Co. (Chalco Trading) lowered aluminium prices it offered in major markets today after yesterday&rsquo;s hike.</p>