SHANGHAI, Apr. 23 (SMM) – Inbound shipments of alumina to China fell 18.91% to 376,900 tonnes in March due to production cuts at aluminum producers and falling prices, Shanghai Metals Market understands.
In China, more than 1.32 million tonnes of aluminum capacity has been put offline by the week ending April 18, leaving 660,000-tpy alumina capacity, or an additional monthly increase of 55,000 tonnes of alumina in surplus.
In Guangxi, alumina price slid to 2,180 yuan ($353) per tonne from 2,380 yuan per tonne (ex-works, including tax) before the Chinese New Year holiday.
As domestic aluminum prices tumbled, term price for alumina weakened to 2,250 yuan per tonne in Shanxi and Henan, while alumina price at ports held above 2,500 yuan per tonne, leaving domestically-produced alumina in a more favorable position, according to SMM’s Research Team.
SMM expects a further decline in imports in April due to rising FOB price for Australian alumina and inventory pressures at China’s ports.