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China Ex-works Shanxi Alumina Strengthens Further to Yuan 3,000/mt

"We think prices can still test higher, but a lot depends on demand and supply, and it's unclear how the winter cuts will pan out for now. Alumina has been rising too fast, which means it can also fall fast, so we're not buying spot for now,"...

From: platts.comDate: 2017-09-07 03:38:07Views: 781

The China ex-works Shanxi daily spot alumina assessment rose again Wednesday to Yuan 3,000/mt ($459/mt) cash, up Yuan 20/mt from Tuesday and reflecting a Yuan 120/mt increase on the week.

The price was also up Yuan 520/mt from last month.

Bauxite supply concerns in Shanxi province due to potential mine shutdowns for environmental reasons, high aluminum prices, limited spot alumina supply, and rising spot offers, continue to provide strong support, sources said.

On Wednesday, potential buyers indicated a maximum buy guidance of Yuan 3,000/mt cash, with sellers pointing to Yuan 3,000/mt as a minimum tradable level.

"We think prices can still test higher, but a lot depends on demand and supply, and it's unclear how the winter cuts will pan out for now. Alumina has been rising too fast, which means it can also fall fast, so we're not buying spot for now," a Xinjiang smelter said.

A South China smelter agreed: "For now, prices are high because spot supply is tight, with refiners all focusing on term deliveries. Even offers in Guangxi are closing in to Yuan 3,000/mt."

On Wednesday, Aluminum Corp of China (Chalco) raised its spot offers ex-works Shanxi and Henan provinces to Yuan 3,090/mt from Yuan 3,030/mt Tuesday and Yuan 3,010/mt Monday.

On Tuesday, Shandong Hongqiao quoted Yuan 3,100/mt for October spot ex-works Shandong basis.

The front-month aluminum contract on the Shanghai Futures Exchange closed at Yuan 16,170/mt, down from Yuan 16,275/mt a week ago but up from Yuan 14,935/mt last month.

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