Industry News

Alumina review 2024: Multiple bullish factors resonated, spot alumina prices rose by over 80%

Views : 48
Update time : 2025-01-20 16:44:39
In 2024, the domestic alumina market experienced frequent disruptions. The supply gap of bauxite limited the increase in domestic alumina capacity, overseas alumina production cuts occurred, and the resumption of aluminium production in Yunnan was earlier than expected. During the dry season, no power rationing or production cuts were observed. Under the resonance of multiple bullish factors, the SMM alumina index price surged from RMB 3,154 per tonne at the beginning of the year to RMB 5,698 per tonne at year-end, marking a significant increase of 80.66 per cent.

At the end of 2023, large-scale production cuts and suspensions occurred in bauxite mines in Shanxi. In Q1 2024, domestic ore production in Shanxi and Henan did not resume, and some alumina refineries in southwest China also faced insufficient bauxite supply. The tightness in bauxite supply intensified, and temporary procurement of imported ore faced significant challenges. Coupled with the impact of winter environmental protection policies in northern China, alumina producers were forced to cut production, resulting in an overall tight supply of alumina. Spot prices rose significantly compared to Q4 2023. The average SMM alumina index price in Q1 2024 was RMB 3,328 per tonne, up RMB 326 per tonne from RMB 3,002 per tonne in Q4 2023, expanding alumina profit margins.

From late February to March, driven by the expanded profit margins, some alumina refineries supplemented raw materials by procuring imported bauxite, leading to an increase in operating rates. Spot prices in northern China saw a slight correction, while in southern China, due to the resumption of aluminium capacity, increased demand provided stronger support for spot prices, which remained stable overall.

Related News
Read More >>
The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today
Mar .12.2025
The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today
Uzbekistan’s aluminium cans manufacturing unit to reduce dependency on imported aluminium packaging Uzbekistan’s aluminium cans manufacturing unit to reduce dependency on imported aluminium packaging
Mar .12.2025
Uzbekistan’s aluminium cans manufacturing unit to reduce dependency on imported aluminium packaging
Two contrast sequences set to boost China’s aluminium smelters’ profitability, offsetting tariff losses. What are they? Two contrast sequences set to boost China’s aluminium smelters’ profitability, offsetting tariff losses. What are they?
Mar .12.2025
Two contrast sequences set to boost China’s aluminium smelters’ profitability, offsetting tariff losses. What are they?
International crude oil prices increase on Mar 11 International crude oil prices increase on Mar 11
Mar .12.2025
International crude oil prices increase on Mar 11