Chinese Alumina Market Sees Record Highs in Early 2024 Amidst Bauxite Supply Concerns

The alumina market in China has witnessed a significant increase as the year 2024 unfolds, with alumina prices reaching new highs since the previous year. According to the latest data from the Shanghai Metals Market, the average spot price for alumina in China soared to RMB 3,154 per metric ton on Tuesday, January 2, 2024. This marks a notable increase of RMB 35 per metric ton since the preceding Friday, culminating in a week-over-week rise of RMB 128 per metric ton from RMB 3,026.

Regionally, the price surge in alumina is evident across various provinces in China. In Henan and Shanxi, the spot price for alumina skyrocketed by RMB 50 per metric ton to RMB 3,180 and RMB 3,215 per metric ton, respectively. Prices in these regions are estimated to fluctuate between RMB 3,110-3,250 and RMB 3,180-3,250 per metric ton. Meanwhile, Guizhou, Guangxi, and Shandong witnessed increases of RMB 25, RMB 20, and RMB 15 per metric ton, respectively, setting the prices at RMB 3,115, RMB 3,130, and RMB 3,065 per metric ton.

In contrast to the rising alumina prices, the A00 aluminium ingot price has demonstrated a resistance to growth. Since December 29, the price for aluminium ingots has remained relatively stable, with a slight decrease of RMB 90 per metric ton over the weekend, settling at RMB 19,480 per metric ton as of January 2, 2024. Despite this recent dip, the price is still up by 1.46% from RMB 19,200 per metric ton on a week-on-week basis, and a 4.39% increase compared to RMB 18,660 per metric ton on a year-on-year basis.

This trend is mirrored across several Chinese provinces. In Wuxi and Hangzhou, the A00 aluminium ingot price dropped by RMB 120 per metric ton, aligning with the price in Chongqing and Tianjin, which also decreased by the same amount. Shenyang, Foshan, and Linyi saw decreases of RMB 80, RMB 70, and RMB 60 per metric ton, respectively.

Moreover, aluminium alloys have not shown any significant price growth on January 2, 2024. The price of aluminium alloy (A356) has declined, whereas the prices for aluminium alloys (ADC12) and (A380) have remained stable. The Shanghai Metals Market reports that aluminium alloy (A356) has decreased by RMB 100 per metric ton, with the average price expected to be between RMB 20,000 and RMB 20,300 per metric ton.