Mysteel's daily price assessment showed that the national average price for smelter-grade alumina with a minimum purity of 98.6% edged up by Yuan 6 /tonne on day to stand at Yuan 2,749/t on Thursday.
The upward movement was largely driven by higher offering prices in three of China's five key alumina production regions. In Shanxi, Shandong and Henan, assessed prices for the same grade of alumina all rose by Yuan 10/t from the prior day, reaching Yuan 2,775/t, Yuan 2,745/t and Yuan 2,765/t respectively.
In contrast, prices in Guangxi and Guizhou stayed steady at Yuan 2,680/t and Yuan 2,780/t respectively.
In the derivatives market, alumina futures on the Shanghai Futures Exchange showed slight volatility. The most-traded alumina contract for September delivery dropped by 0.31% by the end of Thursday's daytime trading but dropped by 0.52% overnight, closing the nighttime session at Yuan 2,922/t as of 1 a.m. Friday.
Recently, production disruptions at an alumina refinery in Shanxi have spurred increased inquiry and procurement activity from downstream consumers and traders. Coupled with high-level fluctuations in futures prices, this has bolstered sellers' resolve to hold firm on offers. Consequently, transaction prices have diverged significantly, while overall trading activity remained weak. As the price gap between northern and southern China widens, cross-regional flows are expected to become more frequent.
Additionally, three major enterprises have experienced operational disruptions since the start of the year, leading to reduced efficiency in fulfilling long-term contracts, further tightening supply conditions in the short term. However, with the expiration of a large number of warrants and ongoing uncertainties regarding bauxite import policies, the market remains locked in intense negotiations between buyers and sellers. Alumina prices are thus expected to continue a steady-to-firm trend in the near term.
