DAILY: China's spot alumina prices continue to soften

Mysteel assessed the national average spot price for metallurgical-grade alumina with a minimum purity of 98.6 per cent at RMB 2,731 per tonne (USD 400.6 per tonne) including 13 per cent VAT on Tuesday, down by another RMB 12 per tonne from Monday. This marked the lowest price level in nearly a month, Mysteel Global noted.

 Regionally, price assessments in China's five major alumina production bases all weakened further. The assessed price for the same grade of alumina in Guangxi fell by RMB 20 per tonne on day to RMB 2,710 per tonne, while that in Shanxi recorded a daily decline of RMB 15 per tonne to RMB 2,720 per tonne. Prices in Shandong and Henan dropped by Yuan 10/t each to sit at RMB 2,685 per tonne and RMB 2,730 per tonne, respectively. In Guizhou, the decrease was more modest, with the assessed price easing by RMB 5 per tonne to RMB 2,810 per tonne.

 In the derivatives market, the most-traded alumina contract on the Shanghai Futures Exchange for May delivery edged up by 0.3 per cent during Tuesday's daytime session but retreated in night-time trading, slipping by 0.61 per cent to close at RMB 2,624 per tonne by 1 a.m. Wednesday.

 Sentiment in the physical market remained pessimistic, weighed by an outlook of looser supply amid the ramp-up of newly commissioned capacity, the impending maturity of alumina warrants, and increased inflows of imported alumina. This anticipation led some alumina sellers to continue lowering their offers to facilitate sales.

 On the demand side, primary aluminium smelters with raw material replenishment demand generally maintained a cautious procurement strategy, opting to purchase either via tenders or in the spot market at lower price levels.

 Mysteel heard of two concluded transactions involving 24,000 tonnes of alumina yesterday in the domestic spot market. A smelter in Gansu procured 20,000 tonnes of North China-origin alumina via tender at a delivered price of Yuan 2,830 per tonne including freight and the VAT. And a trader sold 4,000 tonnes of Henan-origin alumina to a smelter at Yuan 2,680 per tonne EXW including the VAT, with the material delivered to the smelter's facilities in Henan and Sichuan.

 In the overseas market, Mysteel noted two finalised deals for alumina the same day. A 30,000-tonne cargo was concluded at USD 336.5 per tonne CIF China for June shipment, while another 20,000-tonne consignment was traded at USD 336 per tonne CIF China also for June shipment.

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