Shanghai Nonferrous Metals News
Domestic aluminium smelters cut orders on a bleak market outlook in the mid-long term as the COVID-19 pandemic continues to spread across the world outside of China. Refiners have been holding firm on prices given relatively
small amounts of inventory. The combination of these two factors has led to a stagnating market, with alumina prices steady at RMB 2,570/t. However, when aluminum prices plummet triggering actual losses for smelters, they will become reluctant to replenish. Global alumina prices have been in decline, and the arbitrage window is likely to weigh on domestic alumina prices. According to SMM, domestic alumina prices fell by RMB200/t yesterday to RMB2,370/t.
Despite limited new alumina projects, several alumina refineries are set to increase production – signaling increasing supply. A glut of alumina, shrinking demand and declining alumina prices in the global market have the potential to drive domestic alumina prices down further in the short-term.