Chinese spot alumina prices continued to rise Thursday as market sentiment remained strong, with the general expectation that levels will test higher after the Golden Week holidays.
China will be closed October 1-7 for National Day celebrations.
Platts ex-works Shanxi alumina spot assessment stood at Yuan 2,150/mt ($322) full cash terms Thursday, up another Yuan 50/mt on the day after gaining Yuan 50/mt Wednesday. The current price was also up Yuan 150/mt on the week and Yuan 310/mt higher from a month ago.
"Trades in Shanxi at Yuan 2,100-2,150/mt cash is not an issue anymore," a Northwest China smelter said. "We've heard tradeable prices are being talked around Yuan 2,150-2,200/mt cash now."
A South China smelter agreed, saying prices are "all over the place, depending on who is desperate to buy. Refiners are in no rush to sell, expecting prices to rise further, so they will quote as high as they can now."
In Henan province, tradeable ex-works alumina prices were indicated at Yuan 2,150-2,200/mt cash Thursday, up from around Yuan 2,150/mt cash to partial credit terms Wednesday. Offers remained in a wide range of Yuan 2,200-2,310/mt, sources said.
"Chalco is offering at the high of Yuan 2,310/mt in Henan, but nothing has been done at that level. No-one is really selling or buying now, the holidays are here already," a Henan refiner said. "Tradeable prices have probably not even reached Yuan 2,200/mt yet, but after the holidays, the levels will likely hit Yuan 2,200-2,300/mt."
Ex-works Guangxi alumina prices were also heard higher Thursday at Yuan 2,000/mt cash and above, up from Yuan 1,950-2,000/mt previously.
A second South China smelter reported hearing a trade done at Yuan 2,040/mt cash ex-works Guangxi Thursday. The deal was not confirmed, but he said it was likely concluded on prevailing strong market sentiment.
"A lot of people have been looking to buy this week, as they are all worried prices will be higher after the holidays. There's also more smelter restarts so there's more demand," the smelter source said.
Higher domestic metal prices, rising transport costs following new trucking policies that took effect last week, and restocking ahead of Golden Week remained primary factors supporting alumina currently, sources said.
The front-month primary aluminum contract on the Shanghai Futures Exchange closed Thursday at Yuan 12,845 mt, up from Yuan 12,555/mt last week, and also from Yuan 12,515/mt a month ago.
