In 2024 December, the price of aluminum hydroxide rose rapidly, as of January 3, 2024, the average price of aluminum hydroxide market was 2010 yuan/ton, compared with 1888 yuan/ton on December 4, 2023, an increase of 122 yuan/ton, an increase of 6.46%. In November before 2023, the price of aluminum hydroxide ran in the range of 1812-1897 yuan/ton, and the difference between the high and low prices was only 85 yuan/ton, and the price increase of aluminum hydroxide in the past half month exceeded the overall fluctuation range in the early period of 2023.  The rapid rise in the price of aluminum hydroxide is the result of a variety of positive factors in the market.

First, raw materials are tight and prices are high

01Domestic ore:

Shanxi and Henan are affected by the policy side of the mine operating rate to maintain a low state, spot resources are difficult to increase into the market, superimposed overseas ore supply has an unexpected situation, will drive the market atmosphere, the downstream alumina market spot transaction is higher than the net price, the enterprise production mentality is relatively positive, considering the two factors such as linkage, positive factors dominate the ore price center of gravity upward.

02Imported ore

On the follow-up of the oil depot explosion in Guinea, some mines are limited in production, but there is no direct impact on shipping, but because there are still long orders in execution, limited spot resources, less actual transaction news, and considering the follow-up domestic alumina ore demand, once supported the spot quotation of imported mines is running on the high side.

Second, a variety of factors lead to the tight supply of aluminum hydroxide

01

Total aluminum hydroxide output decreased:

Recent bauxite resources are still tight, coupled with high prices, some aluminum hydroxide enterprises therefore pressure production operation, resulting in a reduction in the total output of aluminum hydroxide.

02

Aluminum hydroxide enterprise export willingness decline:

Alumina supply is tight, the price is rising rapidly, the profit margin is more considerable than aluminum hydroxide, aluminum hydroxide enterprises are more inclined to sell roasted aluminum hydroxide, aluminum hydroxide export willingness has declined, some enterprises have stopped aluminum hydroxide orders.

Third, the price of alumina has risen sharply

At present, the mainstream price of aluminum hydroxide market is calculated according to the price of aluminum oxide, and with the sharp rise in the price of aluminum oxide, the price of aluminum hydroxide has also significantly probed.

In summary, although the demand for aluminum hydroxide is still at a low level, the supply of aluminum hydroxide has been sharply tightened, resulting in a change in the supply and demand pattern of the aluminum hydroxide market, and the price of aluminum hydroxide has risen significantly with the price of aluminum hydroxide, and the discount has been reduced.