The price of Australian alumina slipped $0.50/mt Thursday, taking the Platts daily assessment to $356/mt FOB, with low Shanghai Futures aluminum prices continuing to weigh on alumina bids.
China remained interested in imported alumina, however buyers have been low-balling, citing low SHFE prices and poor smelting margins.
In the last couple of days, Chinese consumer/reseller sources have put the buyers ceiling at $370/mt CIF. At least one seller was targeting $376/mt CIF China. Earlier sellers guidance was heard at $376-377/mt CIF.
SHFE aluminum has plunged Yuan 1,245/mt ($203) in the last month-and-a-half to Yuan 13,685/mt on Wednesday, sending Chinese alumina buyers to the sidelines.
A trader said he has established that there's no buyer at $375/mt CIF China.
A consumer/reseller said should SHFE aluminum stabilize around circa-Yuan 13,600/mt, he would expect alumina bids to surface at $370/mt CIF China.
The first trader also said he would expect sellers to feel some pressure to offload in coming weeks, as the end of the fiscal year draws closer.
In recent months alumina price discussions in Asia have mostly been in CIF China terms rather than FOB Australia, due to extremely thin demand for spot tonnage outside China, and discounted freight rates.
Platts assessed the handysize freight rate at $19/mt on Tuesday for 30,000 mt of alumina to be shipped in December from Western Australia to China's Lianyungang port. Platts did not publish a freight assessment on Wednesday due to a public holiday in Singapore. The freight assessment for Thursday had not been finalized at the time of this report's publication.
The Platts ex-works Henan daily assessment was unchanged at Yuan 2,850/mt for 70:30 cash and credit payment terms.
The Sherwin Alumina refinery in Texas is operating normally despite being in the second week of a workers' lockout, sources close to the plant's operations said Thursday. Contract workers and the plant's management have been able to keep the plant onstream, one of the sources said.
