DAILY: Chinese alumina prices weaken in spot, futures markets

The national average spot price assessed by Mysteel for smelter-grade alumina with a purity above 98.6% slipped by Yuan 4/tonne ($0.6/t) from Wednesday to Yuan 2,845/t including the 13% VAT on Thursday, a low level last seen on July 24 2023.

The latest drops in spot prices were mainly driven by lower transaction prices in major alumina-producing hubs in northern China. The assessed prices in Shandong province slid by Yuan 10/t on day to average Yuan 2,755/t on Thursday, while those in Shanxi and Henan provinces decreased by Yuan 5/t from Wednesday to sit at Yuan 2,830/t and Yuan 2,845/t, respectively. In contrast, prices in the Guangxi autonomous region and Guizhou province remained unchanged at Yuan 2,890/t and Yuan 2,905/t.

Meanwhile, domestic alumina futures continued their losses. The most-traded January 2026 contract on the Shanghai Futures Exchange slumped by 1.17% during Thursday's daytime session and declined further by 1.15% in nighttime trading to close at Yuan 2,590/t as of 1 a.m. Friday, hitting its record low. 

On Thursday, some primary aluminum smelters with restocking needs stepped into the spot market to take extra tonnage of alumina while pushing for lower transaction prices. Alumina refiners and traders accepted these reductions as they sought to boost sales and lower rising inventories.

Mysteel heard of two deals totalling 15,000 tonnes of spot alumina concluded on Thursday. Specifically, a primary aluminum smelter in the Xinjiang autonomous region bought 10,000 tonnes of North China-origin alumina via tender at a delivered price of Yuan 3,005/t including freight and VAT, while a Yunnan-based smelter purchased 5,000 tonnes of Guangxi-origin alumina at Yuan 2,835/t EXW.

Written by Iris Pang, pangjunyu@mysteel.com