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

<p>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.<br /><br />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. &nbsp;<br /><br />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.<br /><br />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. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/alumina%20refining.jpg" alt="News" width="479" height="272" /><br /><br />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&rsquo;t likely to have uncommitted tons for October and November, and put the market floor at around $235/mt FOB Australia.<br /><br />S&amp;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.<br /><br />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.<br /><br />{googleAdsense}<br /><br />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. &ldquo;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,&rdquo; a Shanxi-based refiner said. &ldquo;Prices are expected to rise even further after the October holidays, so we&rsquo;re not even offering spot anymore, we want to wait and see,&rdquo; he added.<br /><br />&ldquo;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,&rdquo; a smelter in northwest China said.<br /><br />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.</p>