DAILY: China's spot alumina prices track lower, trading subdued

The average prices for alumina with a purity level of over 98.6% in Henan, Shandong and Guizhou provinces all nudged down by Yuan 20/tonne ($2.8/t) from March 19 to reach Yuan 3,195/t, Yuan 3,140/t, and Yuan 3,290/t respectively on March 20, Mysteel's daily price assessment showed.

The same day in Shanxi province, the average price for the same grade of alumina slipped by Yuan 30/t from the prior day to Yuan 3,175/t on Thursday, decreasing for the ninth straight working day.

Meanwhile, the price assessed for the Guangxi autonomous region by Mysteel was at Yuan 3,220/t yesterday, lower by Yuan 50/t from Wednesday.

The continued accumulation of alumina inventories by some primary aluminum smelters and producers curbed interest for purchasing spot alumina on Thursday, market analysts said. The volume of alumina stockpiled at China's 89 smelters and 44 producers under Mysteel's regular tracking ticked higher by 8,000 tonnes and 10,000 tonnes respectively during the week to March 20, according to results of Mysteel's latest survey.

In consequence, trading activity was subdued in the domestic market, with Mysteel not hearing of any deals being concluded on Thursday, compared to one deal on Wednesday. However, Mysteel heard of one deal concluded in the overseas market yesterday, with a consignment of 40,000 tonnes traded at $409/t FOB Indonesia.

Despite tepid buying interest in the spot market, sentiment improved in the derivatives market. Prices of the 12 alumina futures contracts on the Shanghai Futures Exchange (SHFE) all picked up by Yuan 19-46/t on March 20 during the nighttime trading session, the SHFE's data showed. The price of the most-traded contract for May delivery closed Yuan 35/t higher at Yuan 3,027/t as of 1:00 am March 21, ending the decline seen over the past six consecutive working days.

Written by Iris Pang, pangjunyu@mysteel.com

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