Australian alumina daily assessment flat at $330.50 in thin trading

According to Platts, the daily assessment of Australian alumina on Monday was quite flat at $330.50/mt FOB on thin trading as China was off the market due to a public holiday. A Mid-Autumn Festival national holiday meant China was closed from September 6-8. The alumina buyer’s guide on Friday had hovered around $328/mt FOB while the sellers’ guidance was around $332-334/mt FOB.

The Chinese domestic alumina prices and the LME and Shanghai Futures Exchange alumina prices have given alumina a boost in the recent days. Assessments have gone up by $5/mt on a week on week and $15/mt on a month on month evaluation.

Consumer and trader sources observed that the sellers are choosing to hold on to their stockpiles for the time being in anticipation of further price rise. However, despite the rally in the Australian alumina market, the sources expressed their doubt about the long term sustainability of the rise.

The alumina market is still in a state of global oversupply as the refinery cuts are in no way matched with the smelter cuts across the world. The China ports are one of the prime destinations for the unplaced alumina where they are expected to be bagged and stored in anticipation of future price rise, the sources claimed.

The sources also added that during this wait period, the market participants are exploring time swaps to manage inventories and length. Buyers are sourcing out nearby cargos in the hope of greater returns in future.

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