Aluminum smelters in China anticipate lower alumina prices
2023-03-28 08:18:50 [Print]
BEIJING (Asian Metal) 28 Mar 23 - Over the past two weeks, alumina prices reduced in China because of the weakened demand. Aluminum smelters in China predict lower prices now as the demand would keep weakening and the supply will increase. Present mainstream prices for alumina 98.5%min in China keep at RMB2,820-2,920/t (USD410-424/t) EXW, down by RMB10/t (USD1.5/t) from late last week.
An aluminum smelter from Gansu reported that they now anticipate prices close to RMB2,900/t (USD421/t) EXW for alumina 98.5%min and lately ordered around 10,000t at around RMB2,970/t (USD431/t) EXW early this month. "The mainstream offer in the market now stands at around RMB2,950/t (USD429/t) EXW," said the source, adding that most aluminum smelters cut the inventory level while the alumina supply would increase as a major alumina producer in north China launched a new production line.
With the consumption capacity of 3.4 million tonnes per year, they would use around 260,000t in March, similar to last month and hold around 260,000t in stock down from around 300,000t one month ago. They used over 3 million tonnes in 2022 and over 700,000t so far this year.
A smelter of aluminum from Hubei confirmed that his regular alumina supplier offers RMB2,900/t (USD421/t) EXW now for alumina 98.5%min while he is waiting for RMB2,850/t (USD414/t) EXW, as the alumina supply increased after aluminum smelters cut production in Yunnan. "One of my regular alumina suppliers restarted normal operation from early this month and the supply increased," said the source, who keeps around 7,000t in stock now and considers placing an order on the spot market late next month at cheaper prices. They did not purchase on the spot market over the past two months.
The consumer, with the consumption capacity of 80,000tpy, would use over 6,000t in March, similar to last month. They used around 60,000t in 2022 and over 10,000t during the first two months of this year.
An aluminum smelter from Gansu reported that they now anticipate prices close to RMB2,900/t (USD421/t) EXW for alumina 98.5%min and lately ordered around 10,000t at around RMB2,970/t (USD431/t) EXW early this month. "The mainstream offer in the market now stands at around RMB2,950/t (USD429/t) EXW," said the source, adding that most aluminum smelters cut the inventory level while the alumina supply would increase as a major alumina producer in north China launched a new production line.
With the consumption capacity of 3.4 million tonnes per year, they would use around 260,000t in March, similar to last month and hold around 260,000t in stock down from around 300,000t one month ago. They used over 3 million tonnes in 2022 and over 700,000t so far this year.
A smelter of aluminum from Hubei confirmed that his regular alumina supplier offers RMB2,900/t (USD421/t) EXW now for alumina 98.5%min while he is waiting for RMB2,850/t (USD414/t) EXW, as the alumina supply increased after aluminum smelters cut production in Yunnan. "One of my regular alumina suppliers restarted normal operation from early this month and the supply increased," said the source, who keeps around 7,000t in stock now and considers placing an order on the spot market late next month at cheaper prices. They did not purchase on the spot market over the past two months.
The consumer, with the consumption capacity of 80,000tpy, would use over 6,000t in March, similar to last month. They used around 60,000t in 2022 and over 10,000t during the first two months of this year.
