DAILY: Chinese spot alumina prices slide faster, while futures hit limit-up

Mysteel's daily price assessment showed that the national average spot price for smelter-grade alumina with a purity above 98.6% fell by a larger Yuan 22/tonne ($3.1/t) on day to sit low at Yuan 2,698/t including the 13% VAT on Friday.

By region, the Mysteel-assessed prices in Shandong and Shanxi provinces slumped by Yuan 30/t from the previous day to Yuan 2,600/t and Yuan 2,665/t, respectively. Prices in Henan province dropped by Yuan 20/t to an average of Yuan 2,690/t, while those in the Guangxi autonomous region and Guizhou province slipped by Yuan 15/t to Yuan 2,745/t and Yuan 2,790/t, respectively.

In contrast, domestic alumina futures rose markedly on the final trading day of last week, mainly supported by bullish sentiment following positive policy news. The most-traded May 2026 alumina contract on the SHFE surged by 6.99% to Yuan 2,830/t during the daytime trading session, reaching the exchange's daily limit-up of 7%.

The futures rally followed news that China's National Development and Reform Commission underscored tighter regulation over the domestic alumina refining and copper smelting industries during the 2026–2030 period, as reported by Mysteel Global.

Despite the sharp jump in futures prices, the spot alumina market remained under pressure amid a persistent supply surplus. Alumina sellers were willing to accept lower transaction prices to speed up sales as buyers pushed for further price reductions.

Trading activity in the physical market was active, with Mysteel hearing of three deals concluded on Friday. A primary aluminum smelter in Guizhou purchased 6,000 tonnes of alumina from a trader at Yuan 2,810/t EXW including VAT. The same day, another smelter in Northwest China bought 5,000 tonnes at Yuan 2,600/t EXW, while a Sichuan-based smelter procured 3,000 tonnes of Shandong-origin material from a trader at the same price.

Written by Iris Pang, pangjunyu@mysteel.com