Changes in China's Alumina and Aluminum Spot Prices

China’s alumina output was 4.98 million mt in August, down 1.41% MoM, and up 2.89% YoY, with operational capacity of 58.59 million mt. Xiangjiang Wanji Aluminum suspended production after an industrial accident, and Shanxi Huaxing Aluminum slashed output due to heavy rains, precipitating month-on-month drop in domestic alumina output. Weiqiao Pioneering Group’s new capacity released output.

As of September 9, aluminum inventories in the five regions of China grew 62,000 mt from mid-August to 314,000 mt, with average weekly growth of 15,000 mt. New capacity was released, with newly added operational capacity of 650,000 mt. Meanwhile, downstream demand was soft in the August low-demand month, especially in Guangdong.

As of September 9, aluminum inventories in the five regions of China grew 62,000 mt from mid-August to 314,000 mt, with average weekly growth of 15,000 mt. New capacity was released, with newly added operational capacity of China Customs reports exports of unwrought aluminum and aluminum semis were 410,000 mt in August, up 20,000 mt from July and up 20.59% YoY. Exports of unwrought aluminum and aluminum semis totaled 3.08 million mt in the first eight months of 2016, down 3.75% YoY. The SHFE/LME aluminum price ratio fell from July’s 7.6 to 7.5 in August, inspiring exports.