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Alumina prices expected to retreat in China amid weak demand
Edited by : AL CIRCLE
2 min read
Chinese alumina importers are expecting lower prices this week, with local demand weak and aluminium prices still depressed.
No deals were heard this week and offers were in the range of $340-350 per tonne cif China, according to market participants.
Last week offers were around $357-358 per tonne.
Some importers said they would accept $330-333 per tonne fob Australia, compared with $335 last week.
“We don’t intend to buy anything this week. The aluminium price is weak and many are expecting alumina prices to fall as a result,” a major importer said.
On Thursday February 13, the Shanghai Futures Exchange benchmark April aluminium closed at 13,375 yuan ($2,191) per tonne, down 4.4% from last year’s close of 13,990 yuan per tonne.
The contract hit 13,235 yuan per tonne on Tuesday, the lowest since June 2009.
The light metal has also suffered steep losses on the London Metal Exchange with prices down from $1,802 on January 2 to $1,729 on February 12.
“As the LME aluminium price is lower, alumina import prices would fall for long-term contracts and the spot market will follow the trend as well, it is just a matter of time,” an analyst said.
Offers for Indian material are unfavourable for Chinese buyers, market participants said.
For example, one Indian exporter offered $380 per tonne cif China this week.
The Indian exporters are trying to see if there is an opportunity in China amid the Indonesian minerals export ban, an agent with the Indian exporter said.
“This price can’t work at all in China,” a second major importer said.
China imported 3.83 million tonnes of alumina in 2013, of which 3.57 million tonnes or 93% was from Australia. India accounted for 63,836 tonnes.
No deals were heard this week and offers were in the range of $340-350 per tonne cif China, according to market participants.
Last week offers were around $357-358 per tonne.
Some importers said they would accept $330-333 per tonne fob Australia, compared with $335 last week.
“We don’t intend to buy anything this week. The aluminium price is weak and many are expecting alumina prices to fall as a result,” a major importer said.
On Thursday February 13, the Shanghai Futures Exchange benchmark April aluminium closed at 13,375 yuan ($2,191) per tonne, down 4.4% from last year’s close of 13,990 yuan per tonne.
The contract hit 13,235 yuan per tonne on Tuesday, the lowest since June 2009.
The light metal has also suffered steep losses on the London Metal Exchange with prices down from $1,802 on January 2 to $1,729 on February 12.
“As the LME aluminium price is lower, alumina import prices would fall for long-term contracts and the spot market will follow the trend as well, it is just a matter of time,” an analyst said.
Offers for Indian material are unfavourable for Chinese buyers, market participants said.
For example, one Indian exporter offered $380 per tonne cif China this week.
The Indian exporters are trying to see if there is an opportunity in China amid the Indonesian minerals export ban, an agent with the Indian exporter said.
“This price can’t work at all in China,” a second major importer said.
China imported 3.83 million tonnes of alumina in 2013, of which 3.57 million tonnes or 93% was from Australia. India accounted for 63,836 tonnes.
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