The Platts China spot alumina assessment ex-works Shanxi basis edged higher Tuesday to Yuan 1,620/mt ($247) cash, up Yuan 10 from Monday, and up Yuan 20 on the week.
The current price also reflected an increase of Yuan 10 from a month ago. Refiners' offers have risen Yuan 20-30/mt this week, mainly on the back of refinery cutback news, and relatively stable domestic aluminum prices in recent weeks, multiple refiners, smelters and trade sources said.
Ex-works Shanxi offers were heard at Yuan 1,670-1,680/mt for 50% credit payment terms, and at Yuan 1,650/mt full cash terms.
Tradeable prices were pegged mostly around Yuan 1,620/mt cash, buyers and sellers agreed.
In Henan, ex-works spot alumina offers were heard ranging at Yuan 1,660-1,700/mt for 50% credit terms, with tradeble pegged around Yuan 1,650/mt.
Down south in Guangxi, spot prices were also indicated higher at Yuan 1,550-1,570/mt cash on Tuesday, up from around Yuan 1,530-1,550/mt previously, sources said. Offers were heard close to Yuan 1,600/mt.
The upward movement of spot alumina, however, is expected to be limited by a prevailing weak outlook of the overall alumina/aluminum and domestic economic situation, sources said.
"The improved prices now are mainly supported by cutbacks. But the overall market is not strong, so prices can't rise much," a Henan smelter source said.
A source from major refiner Xinfa Group agreed: "Prices are unlikely to rise further, but it's good they are not falling anymore."
He added that the weaker yuan currency recently may also reduce import interest for alumina, which can add support to domestic prices.
Talks of refinery cuts at up to 7-8 million mt/year by the end of 2015 have been circulating in the past couple of months.
The Chinese yuan stood at 6.5628 against the US dollar on Tuesday, down from 6.4936 on December 31, 2015, and from around 6.36 in early November 2015.
The front-month contract on the Shanghai Futures Exchange closed at Yuan 10,850/mt Tuesday, down from Yuan 11,090/mt last week, but up from Yuan 10,740/mt a month ago.
