China’s alumina futures have surged to a record high due to supply concerns following export disruptions from Guinea’s bauxite mines. Key details include:
Export Suspension: Emirates Global Aluminium reported that bauxite exports from its subsidiary, Guinea Alumina Corporation (GAC), have been suspended by customs, prompting supply worries.
Price Surge: The most-traded November alumina contract on the Shanghai Futures Exchange rose by 4.7%, reaching a record 4,716 yuan ($667.58) per metric ton during trading.
Production Continuity: Despite the export issues, production at the Al Taweelah alumina refinery is ongoing, with the refinery having produced 2.48 million tons of alumina in 2023.
Strong Demand: Chinese alumina consumption remains robust as domestic aluminium producers increase output amid healthy profit margins.
Market Outlook: The alumina market is expected to remain tight through the end of the year, with potential easing in early 2025 if new capacity comes online as scheduled.