Non-Chalco alumina prices may further slide in coming weeks

The average domestic spot price of alumina from Chinese producers other than the state-owned Aluminum Corporation of China Co. Ltd. (Chalco) has dropped by RMB 135 ($19.79) per ton, or 6 percent, since the beginning of May, and prices are expected to fall further due to weak demand, an industry analyst told Interfax on May 11.

"Non-Chalco alumina producers have slashed alumina prices on average by RMB 135 ($19.79) per ton to between RMB 2,180 ($319.55) per ton and RMB 2,230 ($326.88) per ton over the past week up to May 11, and alumina prices are expected to continue the downward trend in the coming weeks, as purchases by aluminum smelters remain weak and they refrain from stockpiling raw materials," Shan Guibin, an industry analyst with ChinaCCM.com, said.

However, Zhang Xin, an industry analyst with CBI China, also attributed the recent fall in non-Chalco spot alumina prices to increased sales of imported alumina. "Some imported alumina is being sold at prices that are similar or even below the current average non-Chalco alumina price," he said.

According to ChinaCCM.com, the prices of imported alumina at Qingdao and Lianyungang ports stood between RMB 2,200 ($322.49) per ton and RMB 2,300 ($337.14) per ton on May 11. Shan said non-Chalco alumina prices will be supported by production costs, which stand between RMB 1,800 ($263.85) per ton and RMB 1,900 ($278.51) per ton.

Chalco's spot alumina price was RMB 2,300 ($337.14) per ton on May 11. -GD

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