Monthly Aluminum Report Jul 2019
2019-08-15 11:57:09 【Print】
The following is a brief synopsis of the report. Your access is restricted as it is a subscription based service.
Please contact us for a subscription.
Please contact us for a subscription.
1 Market Highlights
Alumina prices continued to fall this month due to oversupply, and alumina enterprises in Shanxi and Henan began to suffer losses; primary aluminum plants in downstream market were still waiting on the sidelines and cautious to purchase in spot market.
As alumina prices declined and smelters suffered losses, Chinese origin bauxite prices slightly dropped in July and market supply was still tight.
In July, more new bauxite consumers appeared in the markets of Shanxi and Henan. The production cost of alumina can be reduced significantly by using imported bauxite, so alumina plants further expanded the scale of low-temperature transformation and used more imported bauxite. In late July, the sea freight of bauxite soared and Guinea was in the monsoon, some local bauxite suppliers reduced their production significantly. Prices for Chinese imported bauxite edged up in late July.
In July, some aluminum fluoride plants in China carried out annual maintenance, and the output of aluminum fluoride decreased compared with June. At the same time, the price of fluorspar was firm at a high level, which led to the continuous increase of price of aluminum fluoride in China in July.
Prices for primary aluminum remained firm this month and the majority of the primary aluminum enterprises in places such as Henan and Gansu where the cost is high began to gain small profits. The consumption in downstream market was weak and aluminum ingot stocks on China remained stable.
July is the off-season of secondary aluminum alloy consumption. Transactions of secondary aluminum alloy dropped to the lowest level in the whole year. In late July, main engine plants began to take high-temperature vacation, which led to the continuous reduction of the market demand. Most of the secondary aluminum alloy producers stopped some of their production lines in order to reduce inventory pressure. Prices for Chinese aluminum alloy ingot ADC12 have dropped to the cost line of producers.
Alumina prices continued to fall this month due to oversupply, and alumina enterprises in Shanxi and Henan began to suffer losses; primary aluminum plants in downstream market were still waiting on the sidelines and cautious to purchase in spot market.
As alumina prices declined and smelters suffered losses, Chinese origin bauxite prices slightly dropped in July and market supply was still tight.
In July, more new bauxite consumers appeared in the markets of Shanxi and Henan. The production cost of alumina can be reduced significantly by using imported bauxite, so alumina plants further expanded the scale of low-temperature transformation and used more imported bauxite. In late July, the sea freight of bauxite soared and Guinea was in the monsoon, some local bauxite suppliers reduced their production significantly. Prices for Chinese imported bauxite edged up in late July.
In July, some aluminum fluoride plants in China carried out annual maintenance, and the output of aluminum fluoride decreased compared with June. At the same time, the price of fluorspar was firm at a high level, which led to the continuous increase of price of aluminum fluoride in China in July.
Prices for primary aluminum remained firm this month and the majority of the primary aluminum enterprises in places such as Henan and Gansu where the cost is high began to gain small profits. The consumption in downstream market was weak and aluminum ingot stocks on China remained stable.
July is the off-season of secondary aluminum alloy consumption. Transactions of secondary aluminum alloy dropped to the lowest level in the whole year. In late July, main engine plants began to take high-temperature vacation, which led to the continuous reduction of the market demand. Most of the secondary aluminum alloy producers stopped some of their production lines in order to reduce inventory pressure. Prices for Chinese aluminum alloy ingot ADC12 have dropped to the cost line of producers.
