Spot market transactions remained sluggish, with the total registered volume of alumina warrants continuing to decline

Futures Market: Overnight, the most-traded alumina ag2509 futures contract opened at RMB 3,053 per tonne, with a high of RMB 3,058 per tonne, a low of RMB 3,024 per tonne, and closed at RMB 3,033 per tonne, down RMB 10 per tonne or 0.34 per cent, with open interest at 305,000 lots.

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Ore: As of June 4, the SMM Import Bauxite Index was reported at USD 74.71 per tonne, unchanged from the previous trading day; the SMM Guinea Bauxite CIF average price was reported at USD 74 per tonne, unchanged from the previous trading day; the SMM Australia Low-Temperature Bauxite CIF average price was reported at USD 70 per tonne, unchanged from the previous trading day; and the SMM Australia High-Temperature Bauxite CIF average price was reported at USD 65 per tonne, unchanged from the previous trading day.

Industry News:

1. Recently, Xiamen Xiangyu Co., Ltd. and Shunda Mining Co., Ltd. have made new progress in their cooperation, with the official establishment and commencement of operations of Shunyu Shipping Co., Ltd., a joint venture formed by enterprises under both companies. Shunda Mining is a large Chinese private enterprise deeply rooted in West African Guinea, primarily engaged in the exploration, mining, and sales of mineral resources such as bauxite.
2. According to SMM, the White House issued a statement today stating that US President Trump has officially raised tariffs on steel and aluminium from 25 per cent to 50 per cent, with the new tariffs taking effect at 00:01 Eastern Time on June 4. CCTV News reported that White House Press Secretary Karoline Leavitt confirmed on the same day that the White House had indeed sent a letter "urging" trade negotiation partners to "submit negotiation plans."

Basis Report: According to SMM data, on June 4, the SMM Alumina Index had a premium of RMB 251.22 per tonne against the latest transaction price of the most-traded contract at 11:30.

Warrant Report: On June 4, the total registered volume of alumina warrants decreased by 9,597 tonnes from the previous trading day to 102,400 tonnes. In the Shandong region, the total registered volume of alumina warrants remained unchanged from the previous trading day at 601 tonnes. In the Henan region, it remained unchanged at 300 tonnes. In the Guangxi region, it remained unchanged at 3,001 tonnes. In the Gansu region, it remained unchanged at 0 tonne. In the Xinjiang region, it decreased by 9,597 tonnes from the previous trading day to 98,500 tonnes.

Overseas Market: As of June 4, 2025, the FOB Western Australia alumina price was USD 370 per tonne, with an ocean freight rate of USD 21.95 per tonne. The USD/CNY selling rate was around 7.21. This price translates to an external selling price of approximately RMB 3,272 per tonne at major domestic ports, which is RMB 3 per tonne lower than the domestic alumina price. The alumina import window remains open.

Summary: The weekly operating capacity of alumina continued to rebound, reaching 86.67 million tonnes per annum as of last Thursday, up W-o-W. This has further alleviated the pressure on spot supply. The upward momentum of spot prices has slowed down, and market sentiment has turned cautious, with spot transactions becoming sluggish. In the short term, with the gradual resumption of production from some alumina facilities that were under maintenance and experiencing production cuts, as well as the opening of the alumina import window, the supply pressure on alumina is expected to gradually ease. The average profit margin of the alumina industry has entered a profitable state, and the market has strong expectations for alumina production resumptions. Alumina futures prices have taken the lead in pulling back, which may drive spot prices weaker. Going forward, it is necessary to continuously monitor changes in the capacity of domestic alumina enterprises, as well as the supply of imported alumina.

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.