The Platts Australian alumina daily assessment slipped 50 cents on the day to $354/mt FOB Friday, with bids weakened by the steep month-long plunge in Shanghai Futures aluminum prices.
Participants also reported that more sellers have begun to surface, seeking to offload material of Australian, India and Caribbean origins.
A number of Chinese consumer/reseller sources said this week they had a strong preference for prompt or earlier shipments over later month laycans, due to concerns that the SHFE aluminum market had yet to reach a floor.
Alumina bids and buyers guidance were cited multiple times at $370-375/mt CIF China. Sellers began the week at $380-385/mt CIF China, but by Friday one conceded that $380/mt was not achievable, saying negotiations were trending towards a $370-378/mt range.
Towards the close of market on Friday, a producer reported the sale of a prompt 30,000 mt parcel from Worsley Australia at $378.50/mt CIF Lianyungang LC at sight, for shipment around November 1.
On Friday as well, a trader reported the sale this week of a 50,000 mt shipment at $376/mt CIF China LC at sight, loading at two South American ports between late November and early December.
Platts was unable to immediately confirm the trades with either buyer. A number of consumer, trader and producer sources thought the $378.50/mt CIF China trade was on the high side, possibly with an embedded premium for the prompt laycan.
Price discussions in Asia were for the moment mostly in CIF China terms rather than FOB Australia, due to extremely thin demand for spot tonnage outside of China.
The Chinese Henan spot alumina price closed the week Friday at Yuan 2,860/mt ($465) for 70:30 cash and credit payment terms, unchanged since September 30 before the China National Day holidays from October 1-7.
The current price, however, represented a Yuan 260/mt increase from a month ago.
Alumina had rallied in the past month before the holidays on the back of rising offers due to tightening domestic spot supply, seasonal restocking for the fourth quarter, firming imported alumina prices, and stronger metal prices earlier.
But aluminum prices, both on the London Metal Exchange and domestic Shanghai Futures Exchange, have softened since the market returned this week, which has consequently weakened market sentiment.
On Friday, the front-month October aluminum contract on the Shanghai Futures Exchange closed at Yuan 13,720/mt, down from Yuan 13,975/mt on September 30, and down from Yuan 14,585/mt at the beginning of last month.
"Refiners were hoping to push alumina prices up to Yuan 3,000/mt earlier, but now all hopes are dashed," a refiner source said.
"There's still fundamental support for alumina in Q4, so prices won't fall much, but they won't rise anymore for now," he added.
In the near term, Henan alumina prices are expected to stay rangebound at Yuan 2,850-2,900/mt cash to credit terms, with Shanxi prices to continue hovering around Yuan 2,800/mt cash.
Down south in Guangxi, alumina prices are pegged to remain at Yuan 2,600-2,650/mt cash, sources said.
