China alumina price rises to Yuan 2,700/mt despite lower metal prices
Source: www.chinamining.org Citation: Platts Date: September 16, 2014
The ex-works Henan alumina assessment rose Yuan 60 from Friday to Yuan 2,700/mt ($439/mt) on Monday for 70:30 cash and credit payment terms on limited spot availability and in anticipation of seasonal restocking in the fourth quarter despite lower domestic metal prices, sources said.
The current price was also up Yuan 100/mt from a week earlier, and up Yuan 230/mt month on month.
Offers in Henan were heard between Yuan 2,700-2,730/mt cash to partial credit terms, with buyers` ideas pegged at Yuan 2,650-2,680/mt cash.
The front-month September aluminum contract on the Shanghai Futures Exchange closed at Yuan 14,385/mt Monday, down from Yuan 14,875/mt last Monday.
"Spot stocks are very limited, and those who have stocks are not rushing to sell, preferring to hold off and wait, as they still expect alumina to firm further in the near term," a Henan refiner said.
A Henan smelter agreed: "No one wants to sell as demand is expected to be strong in Q4...we also plan to restock, but we want to see how metal prices move first."
Spot alumina buying is also expected to start picking up this week ahead of the extended National Day holidays October 1-7, sources said.
"Alumina prices rallied after the last extended holidays for the Mid-Autumn Festival [September 6-8], and people are now worried the same will happen after the National Day holidays, so some will want to stock up before that," a South China smelter source said.
On Monday, spot trade volumes were also dampened by buyers shying due to lower metal prices.
"Everyone is just eying metal now...refiners are still hoping for higher prices, but if metal continues to fall, then alumina will follow, so buyers are waiting," a Shandong trader said.
Meanwhile, spot alumina offers in Shanxi were pegged at Yuan 2,680-2,700/mt cash on Monday, steady from Friday.
Offers in Guangxi were also heard mostly unchanged at Yuan 2,480-2,500/mt cash.
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