SHANGHAI, Dec 26 (SMM) -Price review: As of last Friday, the SMM weighted alumina index stood at 2,927 yuan/mt, up 17 yuan/mt from a week ago and 163 yuan/mt from a month ago. The prices stood between 2,860-2,960 yuan/mt in Shandong (+35 yuan/mt), 2,920-3,000 yuan/mt in Henan, 2,940-2,990 yuan/mt in Shanxi (+15 yuan/mt), 2,800-2,900 yuan/mt in Guangxi (+20 yuan/mt), 2,810-2,870 yuan/mt in Guizhou (+15 yuan/mt), and 2,880-2,980 yuan/mt in Bayuquan.
Overseas market: The alumina quotations slid $5/mt from a week ago to $330/mt FOB Western Australia last Friday, equivalent to 2,911.98 yuan/mt CIF major ports in China, which was 14.89 yuan/mt lower than the domestic spot prices.
Domestic market: Alumina prices extended the gains, but the rise slowed down. The mainstream prices stood between 2,860-3,000 yuan/mt in north China as of last Friday, versus 2,800-2,900 yuan/mt in south China. Alumina prices bottomed out on November 21 and have been rising ever since, driven by the sudden output reduction in north China, closure of high-cost capacity, and aluminium smelters stocking up for the Chinese New Year. However, the market activities dwindled last week. After several weeks of stockpiling, aluminium smelters lost interest in alumina at the current high prices. Some smelters have stockpiled a month of alumina and will mainly rely on their long-term orders in the future.
Price evolution: Alumina refineries will gradually suspend their business due to year-end financial settlement. Trading activities will decline further, and alumina prices are expected to stabilise this week.
