Shanghai Nonferrous Metals News
As of 17th April, Friday, domestic alumina prices were RMB2,050/t in Shanxi, RMB2,075/t in Henan, RMB2,065/t in Shandong, RMB2,050/t in Guangxi and RMB2,060~2,090/t in Guizhou, all sitting at a relatively low level.
On the cost side, prices of domestic bauxite and caustic soda continued to fall recently. Domestic alumina refineries have been operating at the same operational rate as last week. However, most refineries in Shanxi, Henan, Chongqing and Guizhou face cash losses at present. Should the prices remain low going forward, an increasing number of domestic refineries are likely to curtail productions in the short-term. On the other hand, increased demand from aluminium smelters and traders is likely to stop alumina prices from falling further. With an estimation of rising aluminium prices and shrinking alumina supply as a consequence of production cuts, domestic alumina prices are expected to rebound slightly in the spot market.