SMM

SHANGHAI, Jul 4 (SMM) – The SMM weighted alumina index stood at 2,816 yuan/mt as of last Friday, up 3 yuan/mt from pre-holiday level (June 21).

Alumina prices by region as of June 30 (yuan/mt)

In the spot market, northern China's alumina price ceased its downturn and prices rebounded in the southwest. Operations resumed at Yunnan's aluminium smelters, triggering a demand spike. SMM projections suggest this revival could attain an output of 1.1-1.3 million mt/year, resulting in a demand surge of 160,000-210,000 mt/year. This prospect heightened confidence among southwestern alumina refineries and stockholders. Guangxi, Guizhou and Chongqing led the alumina price recovery. Last week, 5,000 mt of alumina was traded in Guangxi for 2,800 yuan/mt, instigating an upswing in Guangxi's transaction rates. Domestically sourced ores in Sanmenxia, Henan were scarce due to land reclamation policies, intensifying ore shortage and potentially precipitating production reductions. This situation stabilised alumina prices, exemplified by a deal sealed in Shanxi last week at 2,775 yuan/mt. The 2311 alumina futures contract exceeded 2,800-yuan/mt early in the week and then oscillated around 2,800 yua/mt for the remainder of the week.
In conclusion, aluminium smelters in Yunnan resumed operation, with Guangxi's alumina prices recovering first. In the north, mining constraints in Sanmenxia, Henan supported alumina prices in Shanxi, Shandong, and Henan. Although no strong upward trend was evident, alumina prices generally held steady with a propensity to rise.