Asia alumina: Australia firms $2/mt to $235/mt FOB on Chinese demand

  
The Australian daily alumina price was assessed up $2/mt from Friday at $235/mt FOB Monday on Strong Chinese interest. It was up $4.50/mt on week. Chinese domestic alumina prices continued to climb, eradicating the premium for Australian material against Chinese domestic alumina in import parity terms.

A smelter reported the purchase last week of a prompt 35,600-mt parcel at $255/mt CIF Lianyungang, China, for shipment in early October. On Monday, the smelter said he would be prepared to pay $247/mt CIF Lianyungang for a 30,000-mt cargo with shipment between the second-half of October and first-half of November. 

A second smelter placed a firm bid at $246/mt CIF Lianyungang for a 30,000-mt cargo for shipment between H2 October and H1 November.

From the sidelines, a third Chinese smelter-cum-trader put bid-ask levels at $246-$250/mt CIF Lianyungang for a 30,000-mt cargo for shipment between H2 October and H1 November.

A western trader and stockholder put seller guidance at $237-$238/mt FOB Australia for a 30,000-mt shipment in the next 30-60 days. A producer reported approaches from two Western traders in last three days seeking October and November tonnage. The producer said he wasn’t likely to have uncommitted tons for October and November, and put the market floor at around $235/mt FOB Australia.

S&P Global Platts assessed the Handysize freight rate at $14.05/mt on Monday for a 30,000-mt shipment in late October from Western Australia to Lianyungang. SHANXI GAINS YUAN 20/MT.

Short-term market sentiment was strong on the back of limited spot availability, steady domestic metal prices, and higher transport costs following new trucking policies that took effect last week.

Refiner offers stood mostly at Yuan 2,050-2,100/mt cash ex-works Shanxi Monday, with Chalco quoting higher up to Yuan 2,150/mt. “There is talk that a trade was done Monday at Yuan 2,070/mt for Shanxi spot [alumina] sold to a Xinjiang smelter, but not confirmed. Ingot prices are also rising, so sentiment is strong,” a Shanxi-based refiner said. “Prices are expected to rise even further after the October holidays, so we’re not even offering spot anymore, we want to wait and see,” he added.

“Alumina will probably test higher in the next couple of days and even in near term, but we doubt it can reach Yuan 2,200/mt that soon. Maybe in Henan where spot supply is less, but not in Shanxi,” a smelter in northwest China said.

The front-month aluminum contract on the Shanghai Futures Exchange closed at Yuan 12,680/mt, up from Yuan 12,400/mt last week, and also from Yuan 12,505/mt a month ago.

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