Chinese Alumina Prices Remain Unchanged As Raising Offers Fail

The factory price of Chinese spot alumina is closed at 1620 RMB ($247) per ton last Friday in Shanxi region, which almost remains unchanged from the day before, but rises about 10 RMB this week, and a rise of $40 than last month. Last Friday, the factory price in Henan region is also hold steady at 1650 RMB per ton, and 1550-1570 RMB per ton in Guangxi region.

It is reported that many large refineries will have a meeting this week to discuss how to raise its offer jointly, but a lot of market participants say that it fails and the price remains unchanged. A refinery in Shanxi says, "We have heard the lowest offer in Guangxi region - 1650 RMB per ton, 1700 RMB per ton in Shanxi and 1800 RMB per ton in Henan, but they fail to agree, so nothing is changed."

A smelting plant in Henan thinks it is meaningless to raise its offer now. "The domestic market will soon greet the lunar New Year holiday and some factories may start the holiday from next week, so no one will buy at that time." 

Some Chinese factories will be closed down before the holiday because workers may take several days to go home for the holiday. The production of refineries and smelters will continue, and usually only the fewest employees that are willing to work during the holiday.

Someone expects that the spot alumina prices will have range fluctuations in the short-term, while a smelter in south thinks the spot alumina prices will present the upward trend, mainly because of the reduction of refinery production, even after the lunar New Year holiday."

Since 2016, the domestic market sentiment has improved because the prices of aluminum are generally held steady. There are rumors that the Chinese government may purchasing and storage that will bring the support. Before the coming holiday, there are some replenishment demand this month, further reducing the reserves of refineries, so it is possible that the price may bottom out.