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At the national level, the average price for smelter-grade alumina with a minimum purity of 98.6 per cent was assessed by Mysteel at RMB 2,729 per tonne (USD 403.8 per tonne) last Friday, moving up by a larger RMB 12 per tonne on day and marking a nearly two-month high, Mysteel Global noted.
{alcircleadd}The upward momentum was largely driven by firmer prices in three of China's five key alumina production bases. In Shandong, Henan, and Shanxi, assessed prices for the same grade of alumina jumped by RMB 20 per tonne on day to average between RMB 2,715 per tonne and RMB 2,740 per tonne.
In contrast, the prices in Guangxi and Guizhou remained unchanged at RMB 2,670 per tonne and RMB 2,780 per tonne respectively.
Meanwhile, domestic alumina futures also strengthened further. The most-traded September contract on the Shanghai Futures Exchange increased by 1.07 per cent during Friday's daytime trading and extended gains by a further 0.86 per cent overnight, closing the night-time session at RMB 2,947 per tonne by 1 a.m. last Saturday.
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Firm sentiment, supported by relatively tight spot alumina availability in some regional markets and concerns over potential tightening of imported bauxite supply from Guinea, encouraged alumina producers and traders to either raise offering prices or hold them steady, with limited urgency to sell off stocks.
On the demand side, downstream primary aluminium smelters remained cautious, resisting higher prices and largely adopting a wait-and-see approach to procurement. Trading activity was sparse, with Mysteel not hearing of any concluded deals.
Note: This news is published under a content and exchange agreement with Mysteel
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