Alumina prices fall below $400 per mton as expected as spot demand

Alumina prices have declined from a three-month high of $418 per mton last week to slightly below $400 per mton currently. Market participants report that most consumers/traders have now covered their short positions and spot demand has slowed down as they wait for lower price indications. We continue to see prices falling further as the Alunorte refinery restart could be getting closer and the global market shifts to a growing surplus position this year. Lower alumina prices are bearish for LME primary aluminum prices, as it pushes down smelting production costs.

More details in full report.