DAILY: China's alumina prices track lower

On Tuesday, the average prices for smelter-grade alumina with a purity level of over 98.6% fell again in China's five key alumina production areas. The prices in Shanxi, Henan and Shandong provinces nudged lower by another Yuan 10/t ($1.4) from Monday to reach Yuan 3,040-3,070/t, Mysteel's daily price assessment showed.

This marked the 17th successive working day of decline in Shanxi, the 19th straight working day drop in Henan, and 16th slide in Shandong, Mysteel Global noted.

In parallel, the average prices assessed by Mysteel in Guizhou province and the Guangxi autonomous region both edged lower by Yuan 20/t on day to Yuan 3,150/t and Yuan 3,070/t respectively on April 1.

The decline in spot alumina prices on Tuesday also weighed on the prices of liquid caustic soda, an alumina refining material, market watchers noted. The price of ionic membrane liquid caustic soda with a mass concentration of 32% slipped by Yuan 15/t or 1.72% to Yuan 855/t on April 1 in Shandong, China's largest alumina-producing area, according to Mysteel's tracking data.

Last week's production cuts have not eased the oversupply of alumina, industry analysts said, adding that this is leading some alumina traders to sell spot goods at lower prices to reduce their stocks.

Mysteel heard that in one deal concluded on April 1, a trader in North China sold alumina to a primary aluminum smelter in Northwest China through a tender at a delivered price of Yuan 3,270-3,280/t. The settlement price was lower by around Yuan 100/t from that of a similar purchase also made by a northwestern smelter from a northern trader on March 24, according to market sources.

In the futures market meanwhile, prices of the 12 alumina futures contracts on the Shanghai Futures Exchange (SHFE) showed divergent trends on Tuesday, with most of those edging up slightly during the nighttime trading session. However, the most-traded contract for May delivery nudged lower by a small Yuan 2/t to close at Yuan 2,942/t as of 1:00 am Wednesday, the SHFE's data showed.