DAILY: Chinese alumina prices continue falling, trading stable

The average prices for metallurgical-grade alumina with a more than 98.6% purity in four of China's five major alumina production areas tracked lower on March 17, with those in Henan and Shanxi provinces both dipping by Yuan 20/tonne ($2.8/t) from March 14 to reach Yuan 3,250/t and Yuan 3,240/t respectively, according to Mysteel's daily price assessment.

Similarly, the average prices of the same grade in Shandong and Guizhou provinces dropped by Yuan 30/t from the prior working day to Yuan 3,235/t and Yuan 3,370/t respectively on Monday.

Meanwhile, the average price in the Guangxi autonomous region was assessed by Mysteel still at Yuan 3,380/t on March 17, unchanged for 15 working days since February 25, Mysteel Global noted.

On Monday, some traders intending to sell spot alumina at a discount to liquidate their inventories, and primary aluminum smelters seeking to purchase the raw material at a lower price, found common ground, industry sources observed.  

As a result, agreements were reached in the spot market on March 17, with Mysteel hearing of another deal concluded in Guizhou, the same as last Friday. A trader in the Southwest province sold 5,000 tonnes of alumina at Yuan 3,250/t EXW to a primary aluminum smelter in Southwest China's Sichuan on Monday, Mysteel Global learned, with the price settled lower by Yuan 30/t from that for the 5,000-tonnes deal done last Friday.

With market sentiment still subdued from last week, prices of most alumina futures contracts traded on the Shanghai Futures Exchange (SHFE) lost more ground this Monday, with the most-traded contract for May delivery closing the nighttime trading session at Yuan 3,119/t as of 1:00 am Tuesday, lower by Yuan 7/t from the settlement price of Monday's daytime trading session, the SHFE's data showed.

Written by Iris Pang, pangjunyu@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com