SHFE aluminium price slump dents China alumina market sentiment

A falling aluminium price on the Shanghai Futures Exchange below production costs has weakened sentiment for China’s alumina market, sources told Fastmarkets this week.

Market participants had been bullish about the Chinese alumina price due to reduced production during the height of the novel coronavirus (2019-nCoV) outbreak in the country early this year. Smelters had removed almost 6 million tonnes of alumina production in northern Chinese regions, equating to roughly 9% of China’s operating capacity, due to a shortage of raw materials and a reduced workforce during travel restrictions.

SHFE aluminium prices have been on a downtrend in February, falling to 13,060 yuan ($1,881) per tonne on February 28 before recovering to...

Published

Hui Li

March 10, 2020

12:26 GMT

Shanghai