ASX 200 LIVE: Market Insights on Share Drops and Gold Stock Surges
Thursday, 10 October 2024, 22:20
Alumina Price Surge Fuels Market Movements
Alumina futures in Shanghai spiked to a record as global supply disruptions and resilient Chinese demand continue to tighten the market of the main feedstock for aluminium smelters. Alumina surged as much as 6.4 per cent to 4630 yuan ($US655) a tonne on the Shanghai Futures Exchange on Friday, its highest since the contract debuted in June 2023.
Factors Behind Price Increase
- The price for shipments from Western Australia climbed to $US550 a tonne.
- Prices have rallied over the past year due to problems with supply in China and Australia.
- Recent reports indicate potential supply interruptions in Guinea, a key supplier of bauxite.
Recent Events Impacting Supply
- In January, Alcoa announced it would shut its Kwinana alumina refinery in Western Australia.
- In May, Rio Tinto declared force majeure on cargoes from its refineries in Queensland due to gas shortages.
- In China, alumina supplies have faced constraints due to an ongoing bauxite shortfall sparked by environmental inspections.
These factors have driven fluctuations in the ASX 200, with significant movements in gold stocks, while companies like WiseTech experience downward trends.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.