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Chinese alumina rises further on strong sentiment, higher offers
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<p>Chinese spot alumina prices firmed further Tuesday as market sentiment remained strong and offer levels continued to rise, sources said.<br /><br />The Platts ex-works Shanxi alumina price stood at Yuan 1,840/mt ($276/mt) full cash terms, up Yuan 40/mt from Monday, and up Yuan 90/mt week on week and Yuan 140/mt month on month.<br /><br />In Henan province, tradeable spot alumina prices were indicated at Yuan 1,850-1,880/mt cash, up from Yuan 1,830-1,850/mt previously. Ex-works Guangxi prices were also heard higher at between Yuan 1,800-1,850/mt cash Tuesday, compared with Yuan 1,750-1,800/mt last week.</p>
<p><br />Prices have been on an uptrend in recent weeks after two refineries shut in Henan and Shanxi — Henan Wanji Aluminium’s 1.2 million mt/year refinery earlier this month due to red mud issues, and Chalco’s 2 million mt/year Shanxi plant last week on flooding and water supply issues.<br /><br />Offer levels have rallied since and several spot trades have reportedly been concluded at higher levels, driving market sentiment.<br /><br />“Refiners are still quoting higher today. We are hearing offers at Yuan 1,900-1,950/mt cash now, for both Shanxi and Henan spot,” a Henan smelter source said. He indicated tradeable spot at Yuan 1,830-1,840/mt cash to 50 per cent credit terms for both Shanxi and Henan regions.</p>
<p>Another Henan smelter said he would pay up to Yuan 1,850/mt cash for ex-works Henan alumina as he expected prices to test higher and range from Yuan 1,850-1,900/mt cash in September.<br /><br />A Western trader who bought Henan spot recently at Yuan 1,850/mt cash said prices might break above Yuan 1,900/mt near term. He also indicated ex-works Shanxi prices at Yuan 1,830-1,840/mt cash to partial credit terms.<br /><br />“Everyone is expecting higher prices, definitely reaching Yuan 1,900/mt soon. So, smelters have no choice. They have to pay more if they want to buy now,” a Beijing trader said.</p>
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