Alumina prices in China will keep falling as the market is gradually turning from shortfall to surplus, SMM predicts.

The pace of capacity restarts and new capacity commissioning in alumina industry is faster than in aluminium industry because alumina production is more flexible than aluminium production. This will turn alumina shortage into oversupply, SMM explained.

SMM, based on our forecast for alumina and aluminium output in June, expects alumina supply deficit to ease further in June.