Falling domestic alumina prices at ports set to eat into China¡¯s imports

SMM’s survey found that alumina prices at ports are around RMB 2,600/mt in mid-to-late May, down RMB 50-100/mt from April.

SMM has learned from alumina traders at Lianyungang port that continuously falling domestic alumina prices are forcing them to cut imported alumina prices. This is because alumina port inventories will only grow without price cuts and cash flows will tighten as a result. Some traders have cut alumina prices at Lianyungang port to as low as RMB 2,580/mt.

The FOB price for West Australian alumina rose by USD 6/mt last week to USD 334/mt. Alumina CIF prices are as high as USD 360/mt, and after adding another 17% in tariffs, CIF prices are now higher than retail prices at ports. As a result, some traders say they may scale back alumina imports in the future.

China Customs data indicate that China imported 321,400 mt of alumina in April, up 14.15% YoY. Imports of Australian alumina rose 46.57% YoY to 318,100 mt.

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