The Platts Australian alumina daily assessment was down $1 at $259/mt FOB Thursday, with bid-ask levels pressured by unplaced cargoes, low aluminum prices and smelting margins.
Merrill Lynch estimated last month that almost 50% of global aluminum smelters are unable to break even.
There has been no shortage of alumina of Australian and other origins for shipment in November and December, but buyers have been harder to come by.
Chinese smelters don't mind topping up on alumina, but they do have the option of sourcing local material, which is readily available, tradable in small lots and accessible within days rather than weeks.
Alumina buyers guidance were at $255-$258/mt FOB Australia and $270/mt CIF China for shipments in November and December, with sellers interest from $260/mt FOB Australia and $273/mt CIF China.
Chinese domestic aluminum prices have been on a downturn due to acute oversupply, with the front-month contract on the Shanghai Futures Exchange closing Thursday at yet another low so far in 2015 of Yuan 11,250/mt ($1,774/mt).
The bearish momentum in China's domestic aluminum price is having a knock-on impact on the outlook for domestic and international alumina prices, market sources said.
Chinese participants have said they would not rule out the Shanxi domestic alumina market falling below Yuan 2,000/mt before the end of the year from Yuan 2,150/mt with credit.
Platts China alumina daily assessment for Henan province at Yuan 2,220/mt ex-works for 70:30 cash and credit payment terms has fallen Yuan 80 on the month.
