Market update November 17
Alumina
Last week imported alumina CIF price stayed at 300-320US$/Ton. The local price for imported alumina dropped 200RMB/Ton to 2450-2500RMB/Ton. Domestic non-Chalco alumina went down 50RMB/Ton to 2050-2150RMB/Ton. The price from Chalco dropped 300RMB/Ton to 2600RMB/Ton.
Due to the smelter cut backs and the low alumina price operating plus the soft domestic economy, more and more alumina plant are starting to cut back. To November 5, Chalco already shut down 4 million ton/year capacity, which is 38% of its total yearly capacity.
Aluminum
Aluminum price (Chalco) stayed at 14000RMB/Ton last week, even though most aluminum smelters were already cutting back. But the domestic primary aluminum inventory still rose 60% in last six weeks. The main reason for this is that the global financial crisis has caused a huge decrease of the export of Chinese aluminum, combined with some domestic construction projects stopping. Quite simply, the demand drop is much bigger than the reduction in supply.
Green Coke
Prices of green coke remained stable last week, save for a couple of minor corrections by individual refineries. It was reported that the overall inventory level of refineries has reduced, easing the downward pressure on price. The gap between list price and trade price narrowed down to RMB20-50/ton in general.
High sulphur coke plants increased the application of coke for their CFB boilers. Zhehai refinery uses 60,000ton/month coke for its CFB boilers, Maoming is using 30,000-40,000ton/month, and Guangzhou 20,000ton/month.
Calcined coke
Last week the calcined coke Price kept stable due to the green coke price.
The price of Low sulphur calcined coke dropped 100RMB/Ton to 1400-1600RMB/Ton/ Most low sulphur coke suppliers have sold through their existing inventory, which has taken the pressure off the price.
Moderate Sulphur coke remained at 1400-1600RMB/Ton. High sulphur calcined coke price remained at 1080-1300RMB/Ton.
In winter, moderate sulphur and high sulphur coke can be used as fuel. That should keep the price stable.
Anode
Last week anode prices dropped 300RMB/Ton to 3300-4000RMB/Ton. Some middle-sized and small anode plants stopped producing completely. In order to get some cash, some plants have slashed the price, despite their inventory being made from high-priced August and September coke. Some asmelters are still dragging their heels to pay for their supply of anodes, pushing some plants in Henan and Shadong province to go bankrupt.
For 2009 anode export contracts, some anode plants have already fixed the quantity with foreign buyers, though of course the prices are yet to be fixed. The talk in the industry is for a price around 500US$/Ton next year.