The Australian alumina market was stable Monday, leaving Platts daily assessment rangebound at $342.50/mt FOB, although it has slipped $2/mt in the last week.
Chinese importers reported recent approaches by a notable number of offshore traders and smelters seeking to buy Australian tons for shipment in April and May.
While China has withdrawn from the international open market due to ample cheaper domestic supplies, sources noted that there has been robust demand for Australian tons among other buyers in Asia, the Middle East, and among western traders.
Also, market sources noted that although China has surplus tons, certain Chinese importers have not been able to easily resell term contract alumina from Australia, because their contracts were settled CIF China basis. The CIF-bought tons must go to China, and are less viable for resale than FOB-settled units, sources said.
Two producer and trader sources said they would consider $342.50/mt FOB Australia a reasonable reflection of the market, in light of a recent Vietnam trade at $340.5/mt FOB Go Dau, LC at sight. Vietnamese tons often trade at a discount to Australia due to its lower quality, sources said.
However, the trader source also said he would expect China's weak domestic market to put downward pressure on the price of Australian alumina.
A consumer-and-trader puts sellers' guidance at $345-$349/mt FOB Australia. He thought buyers may be prepared to pay more than $342.50/mt FOB Australia.
The Platts Shanxi daily alumina assessment ticked down Yuan 20 ($2.9) on Monday to Yuan 2,750/mt ex-works in cash, dragged by an alumina and aluminum stockbuild in China.
On Monday, Australian alumina was costlier by about $29 /mt and Yuan 203/mt to Chinese material from Shanxi province, in import parity terms. A large number of market participants were traveling to the US for a large industry gathering in Miami from March 14-16.
