Weak Chinese fundamentals will cap alumina price uptrend - Huatai Futures

China’s domestic alumina market recovered slightly this week after producers raised their offer prices amid production cuts across the country, but the upward momentum will be difficult to sustain over the long term, Huatai Futures aluminium analyst Li Shuheng told Fastmarkets on Thursday August 15.

“Fundamentally, there is no support for the uptrend of [alumina prices in China] over a long period despite some speculation over the recent capacity cuts in Xiaoyi city over August 8-20,” Li said during an alumina conference in the Chinese city of Guiyang. Li was referring to reports that alumina producers in Xiaoyi city, Shanxi province, have been ordered to halve their production rates to comply with government-enforced environmental restrictions that have been put in place due to the 2nd Youth Games of the People's Republic of China, currently taking place in Shanxi. The cuts in Xiaoyi city as well as concerns that operations at the country’s largest aluminium producer, China Hongqiao Group, had been affected by flooding caused by Super Typhoon Lekima, led sellers in the Chinese domestic market to raise their offer prices for alumina this week. Fastmarkets assessed the price for alumina metallurgical grade, ddp China 2,400-2,520 yuan ($341-358) per...

Published

Hui Li

August 16, 2019

09:50 GMT

Guiyang