Alumina prices persist near $335 as China deals through holiday

Metal Bulletin’s fob Australia alumina index settled at $334.57 per tonne on Friday February 7, from $335.35 previously, as China took all the spot business reported to MB even during the Lunar New Year holiday.
The index has stayed at about $335 per tonne since the beginning of the year as spot market activity has been mostly confined to sales into China.

“Despite the Chinese New Year [holiday], we sold several cargoes [into China] early [last] week,” a trader said. “The Chinese have been working from home.”

Deals were reported mostly at $357/358 per tonne on a cif China basis, which nets back to about $335 on a fob Australia basis.

The cargoes came from the Atlantic region, however, where there is good availability of units.

“The market is long in the Atlantic. There are people looking for buyers,” a producer said.

Outside of China, rock-bottom London Metal Exchange aluminium prices and record high aluminium premiums have made people wary of spot trading alumina.
“With the LME at such a low level, people are reluctant to do too much [alumina],” a second producer said. “A few have picked up volumes recently – those with strong connections to China.”

Many buyers said that they will be closely watching the next tender for material from the Worsley refinery in Australia.

“We’ve done no spot deals this week, but the Worsley tender is due on Thursday so we’ll see if the price stays where it is or goes down,” a second trader said. “Will China soak it up or pull back a bit?”