Chinese Henan alumina edges down Yuan 10/mt to Yuan 2,450/mt

The Chinese alumina spot price ex-works basis Henan edged down further Monday to Yuan 2,450/mt ($397.50) at 30% credit payment terms, down Yuan 10/mt from Friday and on the week.

The current price was also down Yuan 20/mt from a month ago.

Henan refiners' offers have dropped Monday to Yuan 2,430-2,470/mt for cash up to 30% credit payment terms, compared with a previous Yuan 2,450-2,480/mt last week.

A prevailing weak domestic aluminum market, coupled with continued low alumina prices in Shanxi and Guangxi regions, were the main factors pressuring Henan alumina, market participants said.

"Aluminum prices couldn't sustain themselves, after edging up briefly in recent weeks, so market sentiment has dampened again," a Henan refiner said. "The lower metal prices have dragged down term alumina contract prices again, so spot has also followed now."

"Shanxi and Guangxi alumina prices are stable for now, but are still at low levels, and the impact has now hit Henan as well," a Beijing trader said.

The alumina price in neighboring Shanxi province was steady at around Yuan 2,350/mt cash Monday, with ex-works Guangxi prices in the south at Yuan 2,160-2,170/mt cash. Prices in these two regions fell in late April on the back of increased alumina supply, and have stayed rangebound since.

On Monday, the front-month May aluminum contract on the Shanghai Futures Exchange closed at Yuan 13,075/mt, down from Yuan 13,195/mt last week and from Yuan 13,300/mt at the end of April.

In the near term, the market outlook is dim and spot alumina prices in Henan are likely to slip further, and may even break below Yuan 2,400/mt for full cash basis, multiple sources said.

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