China's spot alumina prices remained unchange over Feb 20-24 amid thin trade. The market saw increasing downward pressures due to expanding supply surplus in southwest. Besides, the decrease in prices of seaborne bauxite, coal and caustic soda also weakened the support to alumina price.
As of Feb 24, Mysteel daily assessments for Shanxi spot alumina were Yuan2950-2990/t, EXW and including VAT, unchanged from a week ago.
Data: Mysteel
Alumina supply in south China increased, as a producer in Chongqing restarted and other remained steady operation. Refineries in north China mostly operated steadily. However, on the demand side, Yunnan aluminum production cuts driven by power restrictions have started, and aluminum restarts in Guizhou made a very slow progress.
Data: Mysteel
Data: Mysteel
In terms of production cost, seaborne bauxite prices decreased slightly in February on falling freight rates, and caustic soda price kept falling this week due to weak demand and thin margins of alumina producers.
Mysteel predicts that China's alumina prices in south China will likely to edge down in the near term, and tradable prices in north China are likely to stand firm on high cost and stable supply and demand.