FOB Australia alumina price up this week on China's import demand; higher import pushes domestic price

The alumina price on a FOB Australia basis rose to US$285 per tonne on October 28 in the beginning of the week ending Friday November 1, Shanghai Metal Market data shows. It is the highest since early October. The price is driven by renewed demand for imported alumina in China because of restocking by smelters. China aluminium price is on a higher range leading smelters to ramp up production in domestic smelters.

According to Fastmarket’s benchmark daily alumina index, FOB Australia stood at US$285.18 per tonne on Friday, down only slightly from US$285.42 per tonne on the previous day.

Before October 28 it had not traded above US$285 per tonne for four weeks. The price hit US$ 296 per tonne on October 8. According to market participants, a deal was concluded on Friday at US$307 per tonne CIF China. A tender for 30,000 tonnes concluded at US$290 per tonne on a FOB Australia basis.

Whereas, in China, the average spot alumina price dropped by RMB 27 per tonne on Friday, 01 November 2019, to RMB 2596 per tonne after staying flat at RMB 2,623 per tonne from October 24-31.

As large quantities of imported cargoes continued to flow into China after the import arbitrage window opened in late September, it has put pressure on domestic price. China imported 147,800 tonne of alumina in September, increasing by 331.9% YoY, according to the latest data from China Customs.  The volume increased 25% from August import volume of 120,000 tonnes.

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