Aluminium Oxide Price Trend and Forecast

Aluminium Oxide Regional Price Overview

Get the latest insights on price movement and trend analysis of Aluminium oxide in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Aluminium Oxide Price Trend for the First Half of 2024

Asia

During the first half of 2024, aluminium oxide prices exhibited an upward trend with significant fluctuations. In Q1, prices remained relatively stable, with minor increases driven by tight domestic ore supply, energy supply challenges, and production halts due to environmental warnings, particularly in northern and southwestern China. Although some regions saw an easing of supply constraints, overall, the market experienced a tight spot supply with stable prices. As Q2 commenced, aluminium oxide prices surged due to macroeconomic factors, including international sanctions on Russian metals and supply issues at domestic refineries. The tight supply conditions persisted, driven by limited production resumption and cautious selling by producers, leading to active spot transactions and significant price increases in April and May.
 

Aluminium Oxide Price Chart

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However, by late May, the market began to experience price resistance as downstream buyers grew wary of high prices, leading to a slowdown in price increases. In June, the market sentiment shifted further towards caution, with most buyers focusing on fulfilling long-term orders rather than engaging in spot transactions, resulting in prices stabilizing at elevated levels. Overall, the first half of 2024 saw strong demand coupled with constrained supply, driving aluminium oxide prices upward, with expectations of a potential price correction in the second half as new production capacity comes online.

Europe

The consequences of the surge in the quotations of aluminium oxide in Asian countries were also felt in European countries throughout the first half of 2024. However, as the quarters progressed, the dominance of Asian produce on the European markets declined as the escalating cost of transportation and extension of lead times complexed the Asian-European trade routes. Meanwhile, the in-house demand for aluminium oxide picked up its pace in each of the two quarters, pressurizing the inventories and giving the manufacturing and trading sector room to increase their quotations of aluminium oxide.

North America

The bidding war in order to procure the raw materials essential for aluminium oxide production shot up the production cost of the commodity by a significant margin during the first and second quarters of 2024. The on-and-off seasons in China’s industrial market also played a significant role in this scanty production of aluminium oxide and the depletion of global inventories. On the other hand, similar to the European and Asian countries, the downstream applications of the commodity are expanding, creating an imbalance in the demand and supply sectors of the market. Hence, by the end of the second quarter, the prices of aluminium oxide registered a substantial surge in their quotations.

Analyst Insight

According to Procurement Resource, the price of Aluminium Oxide is expected to move northwards in accordance with the current market dynamics with the help of expanding demand and constrained functioning of supply chains.
 

Aluminium Oxide Price Trend for the First Half of 2023

Asia

Aluminium oxide prices had an oscillating trend in the first quarter of 2023. This phase observed problems such as excess supply and downward-moving trading activities, due to which the price trend of aluminium oxide plunged. However, as the quarter progressed, consumer interest returned in the sector, and soon, the prices surged and were able to maintain their momentum in the second quarter, too. Further, the tight supply of bauxite in Australia helped in the growth of export rates and, thus, also contributed significantly to the rise in the prices of aluminium oxide.

Europe

In the initial phase of the first quarter, the trend of aluminium oxide prices was uncertain as the consumers seemed reluctant to place big orders. The prices also seemed to be adversely affected by the restricted supply from Russia. However, during the end phase of the quarter, the market momentum improved on account of strong trading activities and a fall in the level of inventories. This momentum was further carried forward in the second quarter, too. In addition to this, frequent disruptions in the supply chains in the midst of high demand for aluminium oxide also contributed significantly to the upsurge in the price trend of aluminium oxide.

North America

Initially, in the first quarter, the poor progress of the downstream sector and consistent incline in inventory levels proved to be a challenge for the prices of aluminium oxide. But soon, the growing procurement rates and fall in the mining activities in North America influenced the prices of aluminium oxide positively and led to the rise in its price trend. This upswing movement continued till the mid of the second quarter, after which the improvement in the mining sector of developing countries and their declined dependence on North American imports affected the price trend of aluminium oxide negatively.

Analyst Insight

According to Procurement Resource, the price trend of Aluminium oxide is estimated to showcase a fluctuating path. The movement of the prices will be dependent on the condition of global supply chains and demand from the downstream sector.

Procurement Resource provides latest prices of Aluminium Oxide. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.