Alumina prices continue to fall and reach target of $350 per mton, more declines seen ahead

Australia alumina spot price has continued to decline on slower spot demand and falling primary aluminum prices. Alumina has fallen to around $350 per mton, down 16% m/m to the lowest level since September 2017, as a result of: a) expectations of a world alumina surplus in 2019, b) buyers staying on the sideline on expectations of lower prices ahead, and c) LME cash aluminum prices falling to a two-year low of $1,775 per mton. Alumina spot prices are expected to go as low as $250 per mton at some point in the next twelve months.