China's alumina price enjoyed a recovery after remaining sluggish for several weeks. Market sentiment was buoyed by tight supply in the spot market driven by the continuous expansion of production cuts. Consequently, alumina sellers have lifted their offer prices. According to Mysteels tacking, as of November 24, tradable prices in north China were above Yuan 2,800/tonne after 10,000 tonnes of spot cargoes produced in Shanxi were traded at Yuan 2830/t. Tradable prices in southwestern China also rebounded to above Yuan 2,700/t.
The new commissioning and restarts of aluminum in Sichuan and Guangxi have been making progress, but at a slow pace, which did not turn the alumina market from oversupply to shortage in October and continued to weigh on alumina price.
China alumina production cuts table
Source:Mysteel
With the expansion of production cuts, alumina market sees a decrease in available spot cargoes, especially in northern China, which leads to an increase in buying interest and bullish sentiment.
China alumina spot transaction table
Source:Mysteel
Written by Zerlina, yangzirui@mysteel.com