Development Situation of Alumina Market in June and July

Since June, the aluminum prices have been significantly increased at home and abroad. By the middle of July, the LME aluminum price closed at $1670/ton, with an increase of $113/ton a tonne and 7.26%. The highest price is $1703/ton, creating new high this year. And domestic spot aluminum prices have risen by nearly 200 yuan/ton to 13000 yuan/ton, near 1.57%.

However, the alumina market that has direct relationship with the aluminium market market does not profit, but on the way down to the bottom. Alumina market is "Far-fetched though it may seem".

Since early June, the transaction prices of domestic alumina have dropped more than 200 yuan/ton. We take Shanxi Province as an example: The prevailing market prices were about 1980-2020 yuan/ton in early June, and in the middle of July, the market prices have dropped to 1750-1800 yuan/ton.

The actual transaction prices have already fell below 1750 yuan/ton. By the end of July, the market prices have not been stable. The rapid decline of domestic alumina prices reminds people of the market situation last year. Alumina market is "Far-fetched though it may seem".

Although through the theoretical calculation, we can learn that the monthly output of domestic alumina has presented small shortage, but because the alumina inventory fails to run out in Shanxi, Henan and Shandong, alumina prices are difficult to be raised for a short time. At present, the inventory levels of alumina production enterprises in Shanxi, Henan, Guanxi and Shandong have exceeded 600000 tons, and many enterprises will continue to be in the destocking status. The alumina prices will remain weak for a short time.