LONDON (Reuters) – The alumina market is currently seeing a widening gap in pricing between China and the rest of the world. Outside of China the price of the aluminium input has fallen below $300 per tonne for the first time since the second quarter of 2017.
Last year’s explosive rallies above $600 per tonne are a distant memory as the full return of the giant Alunorte refinery in Brazil stabilises supply. In China, by contrast, local prices have rallied by 10% over the last two months to a current 2,650 yuan ($365) per tonne, according to Shanghai Metal Market.
The Chinese supply chain is proving more unpredictable this year with domestic production hit by unforeseen outages, environmental curtailments and declining raw material availability. Divergence between Chinese and Western alumina prices is not new but they tend to move broadly in tandem not in completely different directions. Continue Reading →