Asia alumina: Australia, China strengthened by smelting rates

<p>The Australian alumina market firmed marginally Thursday, driven by a new surge in China&rsquo;s domestic alumina prices and increasing smelting rates. Platts Australian alumina daily assessment rose 50 cents/mt day on day to $230/mt FOB Thursday, and was up $1.50/mt week on week.<br /><br />The premium for Western Australian alumina to Chinese domestic material continued to dwindle, slipping to about $8.50/mt and Yuan 57/mt Thursday in import parity terms for tons from Shanxi province. The premium was around $29/mt and Yuan 193/mt a month ago.<br /><br />Consumers have made a number of inquiries in recent weeks for alumina shipments in October and November but have yet to follow through with purchases.<br /><br />{googleAdsense}<br /><br />Sellers were holding out for $234-$235/mt FOB Australia. Smelters appeared to be warming to the notion of having to pay at least $230/mt FOB Australia and around $244/mt CIF Lianyungang/China main port, but there have been few bids.<br /><br />Steep increases in handy-size freight rates in Asia in the last three weeks may have prevented the FOB alumina price from rising more quickly. A three-week downswing in LME aluminium values has also prompted prospective alumina buyers to wait in the sidelines.<br /><br />The Platts China alumina daily assessment for Shanxi province rose Yuan 30/mt day on day Thursday to Yuan 1,920/mt ex-works in cash. Increased outbound coal traffic has caused acute congestion on the local rail network and delays in the transportation of alumina, market participants said.<br /><br />Increasing aluminium smelting rates in China have also boosted alumina consumption, sources said.</p>