DAILY: Chinese alumina prices remain weak in spot, futures markets

Mysteel's assessment of the national average spot price for smelter-grade alumina with a purity above 98.6% declined by another Yuan 13/tonne ($1.8/t) from last Friday to Yuan 2,815/t including the 13% VAT on Monday, the lowest level since June 30, 2023.

The drop in spot prices reflected lower offering and trading prices in China's five major alumina production bases. Specifically, prices for the same grade of alumina in Shandong and Henan provinces and in the Guangxi autonomous region decreased by Yuan 15/t on day to range between Yuan 2,725/t and Yuan 2,855/t, while those in Shanxi and Guizhou provinces dropped by Yuan 10/t to Yuan 2,805/t and Yuan 2,880/t respectively.

Meanwhile, major alumina futures in Shanghai lost ground yesterday. The most-traded January 2026 contract on the Shanghai Futures Exchange fell by 0.27% to close the nighttime trading session at Yuan 2,574/t by 1 a.m. Tuesday, hitting a new low since the exchange launched alumina futures contracts in June 2023.

With the declines in domestic alumina futures accelerating lately, some alumina traders locked in tonnages at lower price points from the futures market, according to market sources. The traders then offered these low-priced alumina cargoes to downstream buyers with immediate restocking needs, which in turn dragged down trading prices in the spot market.

Mysteel heard of one deal concluded on Monday in Yunnan province, where a primary aluminum smelter purchased 7,000 tonnes of Guangxi-origin spot alumina at Yuan 2,835/t EXW including VAT.

Written by Iris Pang, pangjunyu@mysteel.com