DAILY: China's spot alumina prices slip to over 4-year low

Regionally, the price assessed for the same grade of alumina in Shanxi province slipped by a larger Yuan 20/t on day to Yuan 2,710/t; prices in Shandong and Henan provinces decreased by another Yuan 10/t from the previous day to Yuan 2,640/t and Yuan 2,725/t, respectively; and those in the Guangxi Zhuang autonomous region and Guizhou province also edged lower by Yuan 5/t to Yuan 2,785/t and Yuan 2,815/t, respectively.

The continued weakness in spot prices was mainly driven by softer pricing across the country's five major alumina-producing regions amid a persistent supply glut. Alumina producers and traders further clipped their offers and made concessions during price negotiations to secure sales, resulting in lower spot alumina prices.

Despite the price cuts, most primary aluminum smelters remained cautious about finalizing deals, as they held adequate raw material inventories. Spot market activity was sparse yesterday, and Mysteel did not hear of any concluded deals.

In contrast, the alumina derivatives market continued to rebound yesterday. The most-traded alumina contract on the Shanghai Futures Exchange for February 2026 delivery rose by 0.64% during the daytime trading session and gained a further 0.9% in the nighttime session, closing at Yuan 2,553/t as of 1 a.m. Wednesday.

Written by Iris Pang, pangjunyu@mysteel.com