Monthly Aluminum Report Aug 2019
2019-09-17 18:06:18 【Print】
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1 Market Highlights
Because of the decline of alumina prices and production reduction of smelters for losses, prices for Chinese origin bauxite declined in August but with limited range.
Driven by increased sea freight, prices for Guinean and Indonesian bauxite increased slightly in August. However, as inland alumina plants cut production due to losses, the purchasing demand for imported bauxite in the spot market became weak.
Prices for aluminum fluoride continued to increase in early August but began to stabilize after the middle of August. The operating rate rose this month and the market supply increased accordingly.
Despite the slight rebound, overall alumina prices in China continued to remain at low levels this month. Most of the alumina enterprises in Shanxi and Henan were difficult to gain profits and cut part of their production. With relatively low production cost, the operating rate of alumina producers in Shandong and Guangxi was stable and transactions there were active. Alumina prices in international market remained stable while prices for aluminum hydroxide moved up slightly.
Stimulated by the production reduction of major primary aluminum producers in China, prices for primary aluminum continued to rise and exceeded RMB14,400/t (USD2,024/t), a new high in this year. In addition, as prices for main raw materials such as alumina moved down, the profitability of domestic primary aluminum plants improved significantly.
In early and mid-August, automotive OEMs halted production for a high-temperature holiday, leading to weak demand for secondary aluminum alloy. Producers also took advantage of this time to suspend production and maintain production lines. The high-temperature holiday ended in late August, the demand for secondary aluminum alloy increased and die-casting plants became more interested in purchasing.
Because of the decline of alumina prices and production reduction of smelters for losses, prices for Chinese origin bauxite declined in August but with limited range.
Driven by increased sea freight, prices for Guinean and Indonesian bauxite increased slightly in August. However, as inland alumina plants cut production due to losses, the purchasing demand for imported bauxite in the spot market became weak.
Prices for aluminum fluoride continued to increase in early August but began to stabilize after the middle of August. The operating rate rose this month and the market supply increased accordingly.
Despite the slight rebound, overall alumina prices in China continued to remain at low levels this month. Most of the alumina enterprises in Shanxi and Henan were difficult to gain profits and cut part of their production. With relatively low production cost, the operating rate of alumina producers in Shandong and Guangxi was stable and transactions there were active. Alumina prices in international market remained stable while prices for aluminum hydroxide moved up slightly.
Stimulated by the production reduction of major primary aluminum producers in China, prices for primary aluminum continued to rise and exceeded RMB14,400/t (USD2,024/t), a new high in this year. In addition, as prices for main raw materials such as alumina moved down, the profitability of domestic primary aluminum plants improved significantly.
In early and mid-August, automotive OEMs halted production for a high-temperature holiday, leading to weak demand for secondary aluminum alloy. Producers also took advantage of this time to suspend production and maintain production lines. The high-temperature holiday ended in late August, the demand for secondary aluminum alloy increased and die-casting plants became more interested in purchasing.
