Spot alumina price in South China market registers a drop; new transport rule expected to boost prices

<p>Spot Alumina prices in major China markets have remained unchanged for a fortnight now. Since mid-June, there has been no change in the daily average prices.</p> <p>The average spot alumina price in South China market dropped from <strong>RMB 2,610/t</strong> to <strong>RMB 2,600</strong> on June 28. In the North China market, spot alumina prices remain unchanged at RMB 2,660/t on June 28. Market price difference between North China and South China also dropped to RMB 50/t today from RMB 60/t.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/chart%20(15).jpeg" alt="News" width="517" height="226" /></p> <p>The drop is alumina in the South China market was driven by relatively low bauxite prices in Guangxi, one of the bauxite producing regions in South China.</p> <p>For all other markets (East China &amp; Central China) alumina prices remain unchanged. Chalco alumina prices and average imported alumina prices remain flat at RMB 2,650/t and RMB 2,800/t. &nbsp;</p> <p>In another update from SMM, it is said that flatcars are now forbidden on trains from Shanxi to Urumqi and substituted with container shipments, effective from June 21, 2017.</p> <p>Since, transport capacity for containers is limited; the new rule is expected to slow down shipments of alumina from Shanxi, China&rsquo;s major alumina producing region, to Xinjiang, the region that houses most of its aluminium smelters. The new policy, SMM thinks, will boost alumina prices in the domestic Chinese market.</p> <p>{googleAdsense}</p> <p>Alumina capacity in China is mostly concentrated in bauxite-rich regions which have a nearby port. Shandong, Henan and Shanxi were the top three alumina producing regions in H1 2017. Alumina output in these three provinces stood at 21.39 million tonnes in H1 2017, over 75% of national total.&nbsp;This indicates that a change in the logistic process of Shanxi, one of the top alumina producing region will influence the price of alumina in the domestic market.</p> <p>&nbsp;</p>