Going forward, China's average alumina price in the spot market is likely to reach even below RMB 3,000 per tonne, the weakest since the end of 2023, as projected by Zhang Meng, an analyst with AZ China Ltd. This shift in Chinese aluminium raw material price dynamics is expected to help offset the negative impacts of the Trump administration's 20 per cent aluminium trade tariff against its biggest trade nemesis. Aluminum Corporation of China Limited and China Hongqiao Group believe the anticipated rise in profitability will provide some relief from the harsh effects of the tariff. In addition to tariffs, the US government has finalised anti-dumping and countervailing duties, ranging from 193.90-287.80 per cent and 317.85 per cent, on Chinese aluminium containers.
But why have alumina prices started to decline? One key reason could be the significant rise in ore imports in January and February 2025, totalling 643,500 tonnes—an increase of 64.92 per cent compared to the previous year, indicating an ease of last year's supply woes. Additionally, around 13.2 million tonnes of Chinese alumina capacity is set to come online this year, further hinting the alumina supply chain is back on track.
