WEEKLY: Chinese alumina prices largely hold firm

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Chinese alumina prices remained broadly stable during the May 29-June 4 week, as cautious purchasing by primary aluminium smelters stifled market activity.

As of June 4, the weighted national average spot price for smelter-grade alumina with a minimum purity of 98.6 per cent stood at RMB 2,703 per tonne (USD 398.4 per tonne), unchanged from a week earlier, according to Mysteel's price assessment.

Subdued buying interest weighed on trading activity last week, as many smelters held sufficient raw material inventories and showed limited urgency to procure additional spot cargoes.

Despite the lacklustre demand, sentiment among some alumina producers and traders remained firm. This was partly supported by relatively tight spot availability in certain regional markets. On the supply side, the market saw a mix of developments, with some refineries resuming production while others underwent maintenance-related suspensions.

Overall, China's alumina output stayed largely steady. Production among the 44 refiners tracked by Mysteel totalled 1.8 million tonnes during the week, marking a modest 0.4 per cent increase compared with the previous week, according to Mysteel's survey.

Meanwhile, inventory growth slowed, although total volumes remained elevated. By June 4, combined alumina stocks across China's ten ports, 44 alumina producers, 89 primary aluminum smelters, and rail yards or in transit had reached 6.2 million tonnes, up 0.4 per cent on week, the survey findings showed.

The increase was primarily driven by rising inventories at smelters, as accelerated deliveries shifted material from ports and in-transit channels into smelters' warehouses.

Note: This article has been issued by MySteel and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.