21 SEPTEMBER 2011China Aluminium Network
Chinese aluminium smelters to keep low term alumina imports
Edited by : AL CIRCLE
2 min read
China's aluminium smelters may keep imports of raw material alumina under yearly contracts low next year as prices rise and domestic production increases, industry sources said on Tuesday.
Term alumina to China for 2012 shipments is being indicated at about 15.5 to 16 percent of the price of primary aluminium on the London Metal Exchange after India's state-run National Aluminium Co Ltd sold 300,000 tonnes at about 16 percent last week.
Major Chinese importers have paid 14.8-15.5 percent for 2011 shipments of Australian alumina on a free-on-board basis versus 14.5-15 percent in 2010.
"Having considered the Nalco deal, alumina from Australia should be 15.5-15.6 percent," a trader at an international trading house said, of 2012 shipments from Australia, the most popular origin to Chinese smelters.
Chinese aluminium smelters have so far been unwilling to accept the proposed range and are seeking to import at 15 percent, the trader said.
"Major (Chinese) importers of alumina are unlikely to accept more than 15 percent. To us, any offers above 14.5 percent are too high," said a trading manager at a large aluminium smelter, which is also a large importer of alumina.
The trading manager said many smelters in China expected the country's supply and demand of alumina to be nearly in balance next year.
China's 46 million tonnes of yearly alumina capacity would produce 95 percent of the alumina needed domestically this year due to expanded capacity, state-backed research firm Antaike has predicted.
Term alumina to China for 2012 shipments is being indicated at about 15.5 to 16 percent of the price of primary aluminium on the London Metal Exchange after India's state-run National Aluminium Co Ltd sold 300,000 tonnes at about 16 percent last week.
Major Chinese importers have paid 14.8-15.5 percent for 2011 shipments of Australian alumina on a free-on-board basis versus 14.5-15 percent in 2010.
"Having considered the Nalco deal, alumina from Australia should be 15.5-15.6 percent," a trader at an international trading house said, of 2012 shipments from Australia, the most popular origin to Chinese smelters.
Chinese aluminium smelters have so far been unwilling to accept the proposed range and are seeking to import at 15 percent, the trader said.
"Major (Chinese) importers of alumina are unlikely to accept more than 15 percent. To us, any offers above 14.5 percent are too high," said a trading manager at a large aluminium smelter, which is also a large importer of alumina.
The trading manager said many smelters in China expected the country's supply and demand of alumina to be nearly in balance next year.
China's 46 million tonnes of yearly alumina capacity would produce 95 percent of the alumina needed domestically this year due to expanded capacity, state-backed research firm Antaike has predicted.
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