Declining prices of alumina across China?continued to face pressure from higher operating capacity, a potential?surge in domestic supply, and falling prices of primary aluminium, SMM learned.?
As of Friday June 15, the price of alumina averaged 2,812 yuan/mt, down 92 yuan/mt from a week ago. This marked a fourth consecutive week of decline, following a drop of 94 yuan/mt in the previous week. The traded price in Shanxi and Henan province fell below 2,800 yuan/mt on June 15.
Alumina operating capacity is expected to increase another 1?million mt per year from July. Some 100,000 mt of?bagged alumina at Guangxi ports that were banned from conversion from bag to bulk?grew the likelihood of their sale domestically.
Declining prices of primary aluminium depressed alumina prices and hampered downstream demand for alumina as the commissioning of aluminium new capacity slowed.
As of the morning of Tuesday June 19, the SHFE aluminium 1808 contract hovered around 14,400 yuan/mt, down over 100 yuan/mt from last Friday.
Separately, the Australian alumina fob price stood at $458/mt as of June 15, down $5/mt from a week ago. This indicated?that international alumina prices are approaching a reasonable level.