Alumina prices continue to increase in September
By August 26, alumina spot price was RMB 3930.15 per ton, increased by RMB 22.35 per ton, which is 0.57% up, compared with the beginning of August, and 35.15% compared with the same period last year.
Alumina prices have been running at a high level since May, and prices have risen slightly recently.
From the supply end, the domestic alumina supply continues to be tight and operating rate of domestic alumina suppliers is still at a low level. Alumina manufacturers in Shanxi, Henan areas mostly rely on domestic mine, despite the current supplement from imported mines, only around 65% of the enterprises’ capacity are in use. Coupled with the lack of imported alumina resources, the tight supply situation is difficult to change in short time.
From the demand end, the downstream alumina demand is relatively stable, and the market is nearly saturated, short-term capacity will not have no significant changes.
From the raw material end, bauxite resources are in short supply, rainfall weather has affected domestic mines and Guinea bauxite mines in production and transportation. Bauxite shortage will constrain the domestic alumina producers on actual capacity.
Some industry insiders point that with the rainy season at home and abroad is coming to an end in September, mines operation will tend to stabilize, which may put the tensest stage of alumina supply at an end. At present, alumina may be at its finial highlight moment.
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