Home > Knowledge > Content
With the formal implementation of the winter capacity reduction plan, China's alumina and aluminum prices are in the downward trend
Nov 23, 2017

With the formal implementation of the winter capacity reduction plan, the price of alumina and aluminum in China's market is in a downward trend.

According to Shanghai nonferrous metals network reported that in November 20th, China's spot alumina average price of 3558 yuan / ton, compared with the price of 3593 yuan / ton in November 17th, there is a further decline. Shanghai nonferrous metals network believes that today's spot alumina average price will remain at 3558 yuan / ton. In November 17th, the domestic spot alumina price dropped from 3565 yuan / ton to 3545 yuan / ton; the domestic spot alumina price will remain in the range of 3470 yuan / ton -3620 yuan / ton.

Although the price of alumina remains unchanged, the price of imported alumina has declined. The average price of imported alumina was 3700 yuan / ton, a decrease of 50 yuan / ton, which was the first decline in the price of imported alumina since October.

With the closure of many illegal production capacity, many new legal alumina production capacity has also appeared in china. In November 16th, an eco alumina project with annual capacity of 1 million tons started construction in Guangxi province. The total investment of the project reached 3 billion 800 million yuan, and the annual production capacity was 2 million tons. The first phase of the project contains 1 million tons of annual capacity, and it is expected to be completed within 1 years. After the project is put into operation, it is estimated that 2 billion 800 million yuan will be brought into effect every year.

China's relevant departments said that after the capacity reduction plan began to be implemented, the power consumption data of the power sector will be checked in January 2018 to assess the production scale of the manufacturers.

This month, Shanghai aluminum contract prices continued to decline. Shanghai aluminum 1801 contract fell sharply to below the level of support; at present is 15200 yuan / ton, but it may fall further to 15100 yuan / ton. The decline in Shanghai aluminum prices caused concern in the market. Hedge holders quote at futures premium. Middlemen and downstream firms are on the waiting list.

Copyright © Southwest Aluminum (Kunshan) Co.,Ltd All Rights Reserved.Tel: +86-512-55105768