0123 GMT - China's reliance on imported bauxite and alumina is rising, say Morgan Stanley analysts, who reckon the global alumina market is now especially vulnerable to disruptions and could experience spikes in prices. "Contrary to market perceptions, bauxite and alumina [supply] is tight in China," the analysts say. Domestic bauxite output year-to-date is down 20% on a year earlier, weighing on alumina output. As a result, imports from Australia and Guinea are climbing, at a time when global alumina supplies are also facing headwinds. The analysts say they prefer Chalco, Hongqiao and Nanshan in China, and Alcoa in the U.S. They also highlight Rio Tinto, South32, Alumina and Mytilineos as potential winners from price increases. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
May 27, 2024 21:23 ET (01:23 GMT)
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