Aluminum Prices Rebound But Alumina Market Remains Depressed

According to new data, the domestic spot aluminum prices rebound on August 7-13, and the current domestic spot aluminum is about 11968 RMB/ton, rising by 100 RMB/ton and 0.84% than last week. Many alumina manufacturers express that though aluminum prices rebound, it never brings any changes for domestic alumina market.

The domestic alumina market still remains depressed, and the overall price falls sharply in addition to the import alumina. It only can keep stable in other regions. Recently, aluminum oxide and electrolytic aluminum enterprises are still in the competitive stage, and some small factories are still waiting for instructive quotations or clinch a deal. Influenced by weak demand forecast and LME aluminum prices shakeouts, the imported Australian alumina prices fall again.

FOB prices of imported Australian alumina are $296 - $298 dollars/ton. Compared with the previous period, it has dropped off 4 dollars/tons. And CIF price is $309 - $311 dollars/ton, and it has decreased $4.5 dollars/ton since last week. The transaction price on the port is affected by import prices, and has currently focused on 2460-2500 RMB/ton. Although there is a price difference  between the import price of alumina and domestic alumina price, the downward trend of current import alumina remains unchanged, and it is still difficult to recover.

There is still no significant fluctuations in domestic alumina market price, and domestic alumina enterprises start to keep stable. According to investigation, the total capacity of current alumina in our country will be of 65.55 million tons, the operating capacity of 56.6 million tons, and the production operation rate will reach 86.34%, unchanged from last week. Currently, alumina enterprises run relatively smooth, and do not fall into drop or stop of production and massive overhaul of enterprises. It can keep stable in a short period of time, but the price of alumina in some areas has been close to the cost or below the cost. The downstream electrolytic aluminum has fell into drop of production, alumina capacity will have to change. However, due to large capacity base, the variable capacity is limited.