Monthly Aluminum Market Report Nov 2018
2018-12-14 17:52:56 【Print】
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1 Monthly Highlights
Affected by the haze, the environmental protection policy in Henan was strict from mid-November and some mines were closed again, resulting in tight supply and firm prices.
Indonesian bauxite miners renewed export quota, leading to more exports; meanwhile, the freight fell down. However, bauxite prices didn't drop accordingly.
In November, environmental protection policies for winter were issued in many regions, but the capacities involved were less than those of the same period of last year. Some alumina plants planned to cut production in early November, so the prices edged up due to less supply, but spot transactions were few. In late November, alumina prices went down weighed by low aluminum prices and weak demand resulted from production cut of primary aluminum plants.
In November, aluminum prices fluctuated down continuously. Although capacities involved in the production cut were less than expected, some primary aluminum plants in Northwest and Henan still cut production initiatively to avoid losses. There were some new capacities released in Inner Mongolia and Guangxi. On the one hand, downstream demand found difficulty in improving in the slack season; on the other hand, declining alumina prices offered less support to the cost, thus aluminum prices had no upward momentum.
On 30 November, mainstream transaction prices for Chinese aluminum alloy ingot ADC12 were RMB14,200-14,400/t (USD2,056-2,087/t) EXW D/P, down by RM250/t (USD36.23/t) from 31 October. Stocks of the material increased while production decreased.
Affected by the haze, the environmental protection policy in Henan was strict from mid-November and some mines were closed again, resulting in tight supply and firm prices.
Indonesian bauxite miners renewed export quota, leading to more exports; meanwhile, the freight fell down. However, bauxite prices didn't drop accordingly.
In November, environmental protection policies for winter were issued in many regions, but the capacities involved were less than those of the same period of last year. Some alumina plants planned to cut production in early November, so the prices edged up due to less supply, but spot transactions were few. In late November, alumina prices went down weighed by low aluminum prices and weak demand resulted from production cut of primary aluminum plants.
In November, aluminum prices fluctuated down continuously. Although capacities involved in the production cut were less than expected, some primary aluminum plants in Northwest and Henan still cut production initiatively to avoid losses. There were some new capacities released in Inner Mongolia and Guangxi. On the one hand, downstream demand found difficulty in improving in the slack season; on the other hand, declining alumina prices offered less support to the cost, thus aluminum prices had no upward momentum.
On 30 November, mainstream transaction prices for Chinese aluminum alloy ingot ADC12 were RMB14,200-14,400/t (USD2,056-2,087/t) EXW D/P, down by RM250/t (USD36.23/t) from 31 October. Stocks of the material increased while production decreased.
