Alumina is the most important link in aluminium industry chain, and the biggest beneficiary on the prices of raw materials in the following two years.

Last week, LME aluminum traded around $1,730-1,750 per tonne after dropping from $1,762.5 per tonne last Monday and SHFE 1702 aluminum struggled at around 13,000 yuan per tonne, according to SMM data.

“This week, LME aluminum, to be negatively affected by SHFE aluminum, is expected to $1,700-1,750 per tonne, and price struggles on the SHFE will be intense, with price range between 12,800-13,150 yuan per tonne,” SMM predicts.

In China’s domestic spot market, downstream producers are expected to reduce purchases at the year-end, SMM adds.

Alumina prices, however, are estimated to stay on upward track, SMM forecasts.