AM Statistics: China's domestic alumina stocks up by 16.5% MOM in May
2016-06-06 11:14:14 [Print]
BEIJING (Asian Metal) 6 May 16 - According to the Statistics from Asian Metal, China’s domestic alumina stocks were around 1.2 million tonnes in May, recording an increase of 16.5% MOM. In specific, stocks held by alumina smelters were around 700,000 tonnes, down by 14.5% MOM; those in Xinjiang amounted to about 500,000t, a substantial increase of 150% on a month-to-month basis.
Chinese aluminum smelters’ stocks by month (Unit: kt)
As shown above, stocks held by alumina smelters had dipped for three consecutive months. Prices for Chinese alumina had a very strong tendency to rise during March and April. Downstream consumers and traders believed that prices would rise moving forward, so they purchased and stockpiled a large amount of material, which caused stocks held by alumina smelters to decline continuously. In May, aluminum ingot prices started to fall back, and thus alumina prices were lack of upward momentum. Electrolytic aluminum producers were cautious about making purchases, resulting in a large amount of material in Xinjiang region, as well as traders’ inventories.
Currently, alumina prices have been much higher than the cash flow cost of alumina production, so many alumina producers are resuming production or expanding production; however, electrolytic aluminum producers have less interest in making purchases in the short term as they are well stocks. Therefore, alumina stocks are expected to continue to edge up in June.
Chinese aluminum smelters’ stocks by month (Unit: kt)
As shown above, stocks held by alumina smelters had dipped for three consecutive months. Prices for Chinese alumina had a very strong tendency to rise during March and April. Downstream consumers and traders believed that prices would rise moving forward, so they purchased and stockpiled a large amount of material, which caused stocks held by alumina smelters to decline continuously. In May, aluminum ingot prices started to fall back, and thus alumina prices were lack of upward momentum. Electrolytic aluminum producers were cautious about making purchases, resulting in a large amount of material in Xinjiang region, as well as traders’ inventories.
Currently, alumina prices have been much higher than the cash flow cost of alumina production, so many alumina producers are resuming production or expanding production; however, electrolytic aluminum producers have less interest in making purchases in the short term as they are well stocks. Therefore, alumina stocks are expected to continue to edge up in June.
Alumina 98.5%min FOB Australia
Unit:USD/mt
China alumina producers' number MoM output increase statistics by province by month
Unit: pcs
