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Mysteel assessed the national average spot price for metallurgical-grade alumina with a minimum purity of 98.6 per cent at RMB 2,770 per tonneonne (USD 401.3 per tonne) including the 13 per cent VAT on Wednesday, up by a further RMB 7 per tonne from Tuesday. The increase reflected higher prices across most of China's five major alumina production hubs.
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By region, the assessed price for the same grade of alumina rose most notably in Guizhou province, climbing by RMB 15 per tonne on day to RMB 2,800 per tonne. In Shandong province, the price increased by RMB 10 per tonne from the previous day to RMB 2,745 per tonne. Prices in Henan and Shanxi provinces edged up by a smaller RMB 5 per tonne to RMB 2,780 per tonne and RMB 2,785 per tonne, respectively. In contrast, that in the Guangxi autonomous region stayed flat at RMB 2,740 per tonne.
Also Read: WEEKLY: China's alumina stocks climb to a new high on import arrivals, rail congestion
Meanwhile, the domestic alumina futures market weakened further. The most-traded alumina May contract on the Shanghai Futures Exchange slipped by 2.15per cent during Wednesday's daytime trading and dropped by a further 0.98 per cent during the nighttime session, closing at RMB 2,936 per tonne as of 1 a.m. Thursday.
Despite expectations of increased alumina supply from newly commissioned capacity and imports, these volumes have not circulated in the spot market yet, leaving the supply-demand balance temporarily tight.
While some primary aluminium smelters continued to restock raw materials, alumina producers and traders held firm on their offers, pushing up alumina prices in the physical market.
Spot trading activity remained steady yesterday. Mysteel heard of one deal concluded on March 25, with a smelter in Sichuan province purchasing 3,000 tonnes of alumina from a Guizhou-based refiner at RMB 2,830 per tonne including VAT.
The same day, a transaction was also reported in the overseas market, with a 30,000-tonne deal traded at USD 320 per tonne FOB Australia for April shipment to China.
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Note: This news is published under a content and exchange agreement with Mysteel
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