The spot market for alumina has experienced intense trading panic and “stampede” phenomena after multiple rounds of bidding by aluminum smelting companies and demand-driven procurement, with prices being actively disclosed. On one hand, traders face high settlement costs for long-term purchase contracts with alumina producers, while on the other hand, traders are seeing a price drop of around 400 RMB/ton from aluminum smelting companies offering “fixed price” procurement. After assessing market trends and potential risk losses, traders tend to accept small-scale transactions, which has led to a rapid decline in quotes. Currently, the spot alumina price in northern regions has started to approach around 5,000 RMB/ton.
