Hindalco wins sell tender for alumina; Chinese traders not confident

Last Friday, India’s Hindalco won the sell tender for 25,000 mt alumina parcel shipment at the approximate rate of $338/mt FOB Gangavaram/Vishakhapatnam LC at sight, due to be shipped between March 1 and 7 as revealed by industry sources on Monday.

Over the past months, Chinese traders have discussed that material form Hindalco’s Utkal facility should come at a discounted rate compared to the Nalco products since Utkal is a relatively new refinery and the output has still not achieved the desired level of refinement.

Meanwhile Hindalco is at a disadvantage since shipping 25,000 mt of alumina is less cost effective than the typical Nalco shipment of 30,000. Moreover, the fact that Hindalco uses bags for transportation, it extends the load-in-load-out time as well as spike up the fright costs.

A Chinese consumer/trader rated the Utkal alumina at a $5-7/mt discounted rate of Nalco alumina while others were not sure about the new product.

Hindalco has not been in the alumina export trade long enough for industry experts to define a clear and sustainable price differential with the Nalco’s products or the Australian products.

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