Resumed Chinese alumina capacity puts pressure on domestic price

The Chinese domestic alumina price fell on Thursday July 23 in response to plans to resume idled alumina capacities and due to a contracting aluminium price on the Shanghai Futures Exchange.

Market sources told Fastmarkets 2.1 million tonnes of idled alumina capacity will restart at the end of July while another 1 million is expected to resume in August. The decision to restart the capacity was taken after the alumina price returned to profitability.
Previously, high production costs and low a China alumina price pressured some producers to shut the capacities in December.
“The progress for those resumed capacities was very fast, it only takes 10-15 days to finish [bringing them back online],” an alumina trader in Beijing said.

The resumed capacity will bring an estimated surplus of nearly 100,000 tonnes per month to the Chinese alumina market, an...

Published

Hui Li

July 24, 2020

13:57 GMT

Shanghai