Platts Australian alumina gains on bargain hunting, stronger aluminum prices

The Platts Australian alumina daily assessment closed the week at $311.75/mt FOB, up 64 cents from a day ago, on bargain hunting and stronger aluminum prices.

The assessment was up $1/mt on the week and also $2.75/mt on the month.

On Friday, Chinese consumers/resellers expressed buying interest at $310-311/mt FOB, while sellers appeared vying for $313-315/mt for late August or early September shipments.

Demand appears to have picked up in recent days, spurred by higher metal prices on the LME and Shanghai Futures Exchange, multiple buyers and sellers said. With the SHFE aluminum prices reaching above Yuan 14,000/mt ($2,273/mt), domestic smelters may be willing to pay more for alumina, a Chinese consumer/reseller added.

In addition, a producer reported receiving four separate buying inquires made in the last two to three days for prompt to October shipments of both western and Pacific origins.

Outlook for the alumina prices appeared to be mixed, however. Numerous sources anticipated alumina prices to recover from the floor, but added that any increase would be gradual, as the global alumina market has been in oversupply for some time.

On the other hand, consumer and trader sources were wary of the recent upswing in aluminum prices, which may not be sustainable in the longer term.

Buyers may choose to wait-and-see, depending on the metal price, a Chinese consumer/reseller said. Traders too may also retreat to the sidelines as there simply is no storage space to park cargoes outside of China, a trader said.

"Traders can't just buy a cargo with no home to place it," the trader added.

The Platts China alumina daily assessment Henan province closed the week unchanged at Yuan 2,450/mt for 70:30 cash and credit payment terms in quiet trade.

The assessment was stable on the week but up Yuan 10/mt on the month.

Buyers and sellers were looking to the recent uptick in domestic aluminum price for further direction, to see if prices will continue to rise, sustain, or relapse.

In the meantime, spot negotiations for August tonnage have been delayed to next week, sources said.

The front-month August aluminum contract on the Shanghai Futures Exchange closed the week at Yuan 14,040 mt, up from Yuan 13,810/mt last week and also from Yuan 13,485/mt a month ago.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.