Operating Capacity Analysis of Domestic Alumina Manufacturers in November

The completed production capacity and operating capacity of alumina manufacturers in our country were 72.35 million tons and 62.88 million tons respectively by the end of November. The operating ratio was about 86.91%, and increased by 0.14% from a month earlier.

Domestic alumina prices rose sharply in November, and the prevailing market price reached about 2740-2880 Yuan/ton by the end of November. The monthly average increased by 271 Yuan/ton from a month earlier, and the spot price reached 3000 Yuan/ton, which created a new high within this year.

Compared with October, the aluminum prices greeted periodic boom in November. The industry leading enterprise Chinalco adjusted the spot alumina prices continuously; The price of raw material alkali rose slightly; Environmental protection brought some pressure for aluminum supply. However, affected by aluminum prices and imported alumina, huge orders for spot alumina delayed behind small orders, and the difference in price has widened to 200 Yuan/ton.

Through comprehensive consideration, there are two key factors influencing alumina prices: the aluminum price and the supply and demand. After big jumps, the aluminum prices and the surrounding market have remained high, so the foundation to go up is not solid in the short term.

As the speculative funds make profits, and the exit probability increases, it may drag the aluminum prices to fall, to dilute the early gains, and thus produces negative factors to alumina prices. The alumina prices may diminish. To sum up, it is expected that domestic alumina prices as a whole may continue to edge up in December.

To read more about alumina, please visit the following alumina companies: Yichuan Dongfeng Abrasives Co.,Ltd. and YiChuan County ShengYu Fireproof Material Co., Ltd.