As of Thursday, the SMM alumina index stood at RMB 3,168.46 per tonne, down RMB 57.66 per tonne w-o-w. Prices in Shandong were quoted at RMB 3,100-3,140 per tonne, down RMB 40 per tonne w-o-w; Henan at RMB 3,140-3,180 per tonne, down RMB 40 per tonne w-o-w; Shanxi at RMB 3,100-3,180 per tonne, down RMB 45 per tonne w-o-w; Guangxi at RMB 3,240-3,300 per tonne, down RMB 40 per tonne w-o-w; Guizhou at RMB 3,250-3,310 per tonne, down RMB 30 per tonne w-o-w; Bayuquan remained flat w-o-w at RMB 3,210-3,290 per tonne.
Overseas market: As of Sep. 4, 2025, FOB Western Australia alumina was priced at USD 368 per tonne, with ocean freight rate at USD 22.55 per tonne and USD per CNY selling rate around 7.16, translating to a domestic mainstream port selling price of approximately RMB 3,240.48 per tonne, RMB 72.02 per tonne higher than the alumina index. The import window remained closed. No spot alumina transactions were reported overseas this week.
Domestic market: According to SMM data, as of Thursday, China's total metallurgical-grade alumina capacity reached 110.32 million tonnes per year, with operating capacity at 89.96 million tonnes per year. The national alumina operating rate fell 0.89 percentage points w-o-w to 81.55per cent, mainly due to reduced roasting furnace loads at some plants undergoing maintenance. Regional operating rates were: Shandong flat w-o-w at 91.15per cent; Shanxi flat w-o-w at 77.56per cent; Henan down 2.38 percentage points w-o-w to 58.69per cent; Guangxi flat w-o-w at 89.44per cent; Guizhou down 11.67 percentage points w-o-w to 66.67per cent.
Spot market: Spot transactions were sluggish this week, with sporadic deals showing significant discounts against online prices, driving spot prices lower. Only one smelter tender was reported in north China, with a transaction price below RMB 3,100 per tonne ex-Shanxi; one spot deal was recorded in south China at around RMB 3,260 per tonne.
Overall, alumina fundamentals remained in surplus. Although operating capacity declined this week, the reduction was insufficient to reverse the surplus, as the decrease primarily stemmed from routine maintenance lowering roasting furnace loads, with limited long-term impact on production. Aluminium smelters maintained relatively high alumina raw material inventories at 2.899 million mt this week, weakening spot procurement interest. Sellers also lowered their price expectations. Amid the surplus situation, spot alumina prices are expected to continue their downward trend in the short term. Subsequent attention should be paid to the cost-profitability of alumina enterprises and the dynamics of operating capacity.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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