Restoring and Increasing Production Makes Upward Alumina Prices Blocked

Due to the slump of aluminum prices last year, some domestic alumina plants started to reduce the production, which caused a supply gap in domestic alumina market in February.

The alumina prices have risen since February, but stop to rise in mid-March, which is mainly because the restoring production and increasing production capacity of domestic alumina are gradually emerging, and  electrolytic aluminum enterprises’ raw material inventory do not have too much pressure.

As alumina prices rise for nearly two months, the alumina prices have rebounded around 18% from the lows in January, whose prices have been running more than alumina enterprises’ cash cost, and some enterprises have been in full cost profit condition.

It is understood that due to the rise in alumina prices, most of enterprises that planned to reduce the production have stopped to reduce the production, and some have planned or are planning to restore the production.

According to statistics, the restoring production capacity of domestic alumina enterprises is about 2.8 million tons in one quarter. In addition, new alumina production capacity is about 1.8 million tons in April.

Because the restoring production of 2.8 million tons has output in April, and alumina prices in April can't keep the upward trend in February and March. But influenced by the strong electrolytic aluminum prices, it is expected that the alumina prices will remain stable and strong state in the short term, only the rising space is limited in later period.

And with the additional 1.8 million tons of production capacity in May, it is expected that the alumina prices after May will be confined and go down. But high quality alumina with competitive prices is still available! You can visit the following alumina suppliers: YiChuan County ShengYu Fireproof Material Co., Ltd. and Yichuan Dongfeng Abrasives Co.,Ltd., whose products are very popular with buyers at home and abroad.