Market surplus from smelter capacity cuts forces China alumina prices down

<p>Government initiated wide-scale aluminium capacity cuts in China has triggered oversupply in the domestic alumina market thereby putting a downward pressure on alumina prices. The prices of the commodity used as a key raw material in aluminium smelting (as electrolyte in Hall&ndash;H&eacute;roult method) were down across four major markets in China.</p> <p>The highest price drop was registered in South China alumina prices, for which the average price on Tuesday, July 18, stood at RMB 2,490 per tonne, down 0.40 per cent from its earlier price of RMB 2,500 per tonne on July 13.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/SMMAluminaJuly18.png" alt="News" width="517" height="180" /></p> <p>The average prices of alumina in East China, Central China, and North China markets stood at RMB 2,565 (-0.19%), RMB 2,550 (-0.39%), and RMB 2,550 (-0.39%) per tonne respectively as on July 18. The average imported alumina price in China market remained unchanged at RMB 2,800 per tonne.</p> <p>China Aluminum International Trading Co. (Chalco Trading) also kept the alumina prices they offer for China markets unaltered at RMB 2,650 per tonne.</p> <p>{googleAdsense}</p> <p>Across the board price drop was registered in A00 aluminium ingot as well on July 18. Chalco pared down the aluminium prices it offered in major markets on Tuesday. The revised prices are as follows:</p> <p>Unit: RMB per tonne</p> <p><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/ChalcoJuly18.png" alt="News" width="431" height="200" /></p> <p>Aluminium ingot stocks in five major China markets have peaked in nearly five years, Shanghai Metals Market data showed. As of week ending July 14, stocks in Shanghai, Wuxi, Nanhai, Hangzhou and Gongyi totalled at 1.25 million tonnes, up 30,000 tonnes on a weekly basis.</p>