DAILY: Chinese spot alumina prices dip further, trading quiet

On Tuesday, the average prices for alumina with a more than 98.6% purity in four of China's five key alumina production areas moved slightly lower, with those in Shanxi and Henan provinces and the Guangxi autonomous region all declining by Yuan 10/tonne ($1.4/t) to Yuan 3,145/t, Yuan 3,155/t, and Yuan 3,170/t respectively, according to Mysteel's daily price assessment. The prices had fallen for 12 consecutive working days in Shanxi and for 14 in Henan, Mysteel Global observed.

The same day, the average price for the same grade in Shandong province dipped by another Yuan 5/t from March 24 to reach Yuan 3,120/t, Mysteel's tracking data showed.

On the other hand, the price assessed by Mysteel for Guizhou province was still Yuan 3,270/t on Tuesday, remaining unchanged for the second working day.

The mood of investors in the derivatives market remained positive on March 25, with prices of the 12 alumina futures contracts listed on the Shanghai Futures Exchange (SHFE) edging higher by Yuan 7-30/t during the nighttime trading session. The price of the most-traded contract for May delivery closed Yuan 21/t higher at Yuan 3,098/t as of 1:00 am Wednesday, rising for the fourth consecutive trading day, according to the SHFE's data. 

The volume of receipts registered with the SHFE's delivery warehouses totalled 288,900 tonnes on March 25, higher by 1,800 tonnes from the previous trading day, the SHFE's data showed. The uptick in the registered warehouse receipts signals ample supply and weak demand in the current spot market, a metals analyst in Shanghai explained.

Consequently, buyers were hesitant to purchase spot alumina yesterday, with Mysteel not hearing any deals being concluded.

Written by Iris Pang, pangjunyu@mysteel.com

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