Supply disruptions and demand surged in China, and alumina surged to record levels

Alumina on the Shanghai Futures Exchange surged 6.4%,To RMB 4,630 per ton (contract US $655)，The highest level since June 2023.Western Australian shipments climbed to $550 a tonne,The highest number since 2021.Alumina futures prices in Shanghai surged to record highs as global supply disruptions and strong demand from China led to continued tightening of markets for major raw materials at aluminum smelters.

UAE Universal Aluminum (EGA):Bauxite exports from its subsidiary Guinea Aluminum Corporation (GAC) have been suspended by customs,Guinea is the world’s second largest producer of bauxite after Australia, which is the main raw material for alumina. In a statement to Reuters,The EGA said in a statement to Reuters that,It is looking to customs for relocation,And is working hard to solve the problem as soon as possible.

In addition, China has increased the production of alumina production by using a strong market,Data show that about 6.4 million tons of new capacity will come on stream next year,That could weaken the strong momentum in prices,As of June, China’s total aluminum production capacity was 104 million tons.