Raw materials supply distress globally drives China’s imported alumina price to a 3-year high at US$492/t, shows SMM

Disruptions in primary aluminium raw materials supply due to the ongoing political unrest in Guinea, the largest supplier to the world’s leading aluminium producer China, has driven the latter’s imported alumina price to a 3-year high. According to the Shanghai Metals Market, the Australian alumina FOB price has jumped by US$111 per tonne to come in at US$492 per tonne on September 17, the highest since late October 2018.

Other factors that have also contributed to the distress of global alumina supply, resulting in the surge in China’s imported alumina price is one-third production slash at Alcoa’s Alumar alumina refinery, which has affected 1.2 million tonnes of 3.5 million tonnes annual capacity. In addition, Jamalco alumina refinery in Jamaica, which has an annual capacity of 1 million tonnes, halted production on August 23.

However, China’s domestic alumina spot price has remained restrained, and so the price of A00 aluminium ingot at RMB 22,740 per tonne on September 17. However, a few Chinese cities have seen changes in primary aluminium ingot price, such as Gongyi, Foshan, and Linyi. In Gongyi, A00 aluminium ingot price has grown by RMB 30 per tonne to stand at RMB 22,620 per tonne, while the price in Linyi and Foshan has dropped by RMB 20 per tonne and RMB 10 per tonne to come in at RMB 22,700 per tonne and RMB 22,780 per tonne, respectively.

Aluminium alloys prices have increased across China, resulting in aluminium alloy (A356) price exceeding RMB 25,000 per tonne. Shanghai Metals Market data shows the price has soared by RMB 700 per tonne on September 17 to close at RMB 25,050 per tonne. The average prices are expected to range between RMB 25,000 per tonne and RMB 25,100 per tonne.

Aluminium alloys (ADC12) price and aluminium alloy (A380) price have expanded by RMB 300 per tonne to peg at RMB 23,650 per tonne and RMB 24,850 per tonne, respectively.