Spot Alumina prices in China markets register a drop; no major price drop expected in near term

<p>Spot Alumina prices in major China markets have registered a further fall after the last registered drop in July 7. According to a report from Shanghai Metals Market yesterday, the production of alumina is expected to increase to 5.9 million tonnes in July, and the daily average production to stand at 190,000 tonnes. The production is likely to increase due to increase in production at Yunnan Aluminum&rsquo;s phase two alumina projects in Wenshan.&nbsp;This news had an impact on the tight alumina market.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/china%20alumina3.png" alt="News" width="708" height="281" /></p> <p>The average spot alumina prices in South China market dropped to RMB<strong> 2,525/t</strong> on July 11. In the North China market, spot alumina prices dropped to RMB <strong>2,570/t</strong> today. Market price difference between North China and South China also dropped to RMB 45/t today.</p> <p>For East China and Central China market, alumina prices dropped to settle at <strong>RMB 2,570</strong>/t today.</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>Growing alumina capacity in China would bring down the alumina prices, but in the long run, a capacity cut in the winter months can again influence the prices by tightening the supply.</p> <p>{googleAdsense}</p> <p>Corresponding to the drop in alumina prices, A00 ingot prices have dropped in all the major markets in China today after rallying since the beginning of July. The biggest drop has been registered in North China and Southwest China markets.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/chart%20(19).jpeg" alt="News" width="517" height="226" /></p> <p>According to an SMM insight, falling alumina prices and rising aluminium prices have helped increase profit at aluminum smelters in China. In the short term, according to them, alumina prices are unlikely to fall sharply, so aluminium smelters will see no big drop in cost of production.</p> <p>&nbsp;</p>