Mysteel: China alumina prices plunge faster than expected

As of Jan 17, Mysteel daily assessments for Shanxi spot alumina were Yuan 4,340-4,380/t, EXW and including VAT, down Yuan840/t from a week ago, and assessments for Guangxi spot alumina dropped by Yuan620/t to Yuan 4,870-4,960/t. SHFE most-traded contract closed at Yuan3,868/t, down Yuan198/t on week. We expect that spot alumina prices will keep falling this week to Yuan 4,000-4,500/t.

China's alumina prices in the spot market continued to plunge last week amid rising trading activity of some major smelters. With the changes in supply and demand of the alumina market, some major aluminum producers stepped into the spot market and reduced purchasing prices sharply, which had a big