SMM alumina price exceeds RMB 4500 per tonne: Breaks all records of past thirteen years

The Shanghai Metals Market (SMM) price indicator for alumina on Thursday, October 17, shows a gain of RMB 57 per tonne, totalling RMB 4556 per tonne. In Shandong and Henan regions, the price reached average RMB 4550 per tonne (ranging between RMB 4450-4650 per tonne in Shandong and RMB 4500-4600 per tonne in Henan) in both provinces with an increase of RMB 75 and RMB 50 per tonne, respectively, whereas in Shanxi, the price touched RMB 4625 per tonne on an average (ranging between RMB 4550-4700 per tonne) with a cumulative gain of RMB 50 per tonne in the region. In Guizhou and Guangxi, the price is reflected as an average of RMB 4390 per tonne (+25) and RMB 4500 per tonne (+65), respectively.

The unprecedented surge in alumina prices, compared to the last three years, can be attributed to a severe supply shortage in Guinea.

In early November 2021, the SMM alumina weighted index reached 4,119 per tonne, a new high in the past ten years. However, as of the end of December, the prices had fallen below RMB 3000 per tonne, obliterating all the surges between September and November. The price rise was attributed to the following incidents: 1. three overseas refineries (Alumar, Jamalco, and Gramercy) cut their production, 2. Guangxi required a 50% reduction in local alumina production, 3. Guinea, the leading supplier of Bauxite, experienced political turmoil at the end of August.

In the present scenario, China's primary bauxite supplier and the leading bauxite producer globally, Guinea, has faced flood-induced weather-related challenges since July 2024. This has had a significant impact on the market. Coupled with the high demand and the robust production capacity of Chinese smelters (a result of heavy rains in Yunnan this year has resulted in ample backup of hydro-power for the drier winter months), China witnesses the current alumina price hikes.

A00 aluminium ingot

The A00 aluminium ingot price has come in at RMB 20,760 per tonne as of date following a suge of RMB 90 per tonne. The average prices ranged between RMB 20,740-20,780 per tonne, with the spot contract traded at a discount price of RMB 30 per tonne to a premium of RMB 10 per tonne. The average A00 aluminium ingot pricing has seen a rise in most of the provinces, with RMB 20,720 per tonne (+80) in Gongyi, RMB 20,580 per tonne (+110) in Foshan, RMB 20,750 per tonne (+80) in Wuxi, RMB 20,760 per tonne (+90) in Hangzhou, RMB 20,710 per tonne (+120) in Chongqing, RMB 20,680 per tonne (+110) in Shenyang, RMB 20,780 per tonne (+90) in Tianjin and RMB 20,790 per tonne (+90) in Linyi. The price range in the provinces varies between RMB 20,560 per tonne to RMB 20,800 per tonne.

High-purity aluminium (99.99%) saw a cost-push of RMB 100 per tonne, standing at RMB 27,800 per tonne, averaging between RMB 27,400-28,200 per tonne. The 99.96% purity aluminium ingot was indexed at RMB 28,800 per tonne, indicating the average prices to hover around RMB 28,400-29,200 per tonne.

On the same date, low-carbon aluminium was priced at RMB 21,648 per tonne, with average prices estimated between RMB 21,648-21,648 per tonne.

In the stance of aluminium alloy ingot prices, the A356 and A360 have raised by RMB 100 per tonne, rounding up to RMB 21,550 and RMB 21350 per tonne, while others (ADC12 and AD380) remain unchanged post yesterday's gain.