China’s alumina price slump on SMM indicates tight supply ease and subdued demand for winter heating season

Today, on December 19, the Shanghai Metals Market has indicated a drop in alumina and aluminium prices.  Traditional off-season in China causing lessened demand for primary aluminium among the downstream industry is one of the major factors for sequential aluminium price fall, while production cuts at smelters, especially in the Henan Province, due to the ongoing winter heating season is a reason for downward alumina prices.

Alumina prices:

According to the SMM price list, China’s domestic alumina price has climbed down the graph by RMB 8 per tonne to stand at RMB 5,757 per tonne. Compared to the previous week, the price is standing at RMB 12 per tonne lower than RMB 5,769 per tonne on December 12.

In Henan, alumina price has seen a plunge of RMB 15 per tonne in the context of maximum production cuts at aluminium smelters this season. The price is averaged at RMB 5,750 per tonne, ranging between RMB 5,700-5,800 per tonne. Alumina price in Shanxi has also witnessed a steep fall of RMB 15 per tonne, reaching RMB 5,795 per tonne.

The Australian alumina FOB price has shed off US$11 per tonne, reaching US$670 per tonne, down by US$10 per tonne from a week ago. The downtrend in the imported alumina price since the beginning of December indicates a gradual ease of alumina tightness in the Chinese domestic market. Moreover, more than 13 million tonnes of domestic alumina capacity is slated for 2025. Furthermore, in 2026, the availability is likely to ramp up, with Vedanta Resources planning to begin a new 6 million tonnes per annum alumina refinery and EGA planning to own 2 million tonnes per annum refinery in Guinea.

Aluminium ingot prices

Continuing the downtrend, China’s domestic A00 aluminium ingot price has averaged at RMB 19,680 per tonne versus RMB 19,790 per tonne, reflecting a fall of RMB 110 per tonne for the second consecutive day.

In Tianjin and Shenyang, the aluminium ingot price has fallen by RMB 110 per tonne and RMB 100 per tonne to stand at RMB 19,800 per tonne and RMB 19,790 per tonne, respectively, followed by the decline of RMB 90 per tonne in Linyi, Wuxi, and Gongyi to RMB 19,720 per tonne, RMB 19,690 per tonne, and RMB 19,600 per tonne. In Foshan and Hangzhou, A00 aluminium ingot price has sunk by RMB 70 per tonne and RMB 40 per tonne to peg at RMB 19,880 per tonne and RMB 19,710 per tonne.

China’s domestic low-carbon aluminum and high-purity aluminium (99.99%) prices have decreased by RMB 70 per tonne and RMB 100 per tonne to stand at RMB 20,894 per tonne and RMB 26,800 per tonne, respectively.