China's Spot Market of Aluminum Oxide Waiting for New Direction

News from foreign media on July 24, the price of China's spot alumina appears stuck in a range this week. Many market aluminum oxide manufacturers are waiting for clear direction because the domestic price of alumina remains weak and the market is also volatile.

Based on the 70:30 payment terms, the factory price of Henan’s spot aluminum oxide on Friday is ended with 2360 RMB($386) per ton, becoming flat at the level on Thursday and a week ago, but it fell $40 compared with the price a month ago.

This week, the spot trading becomes slow because the overall market sentiment remains weak. It is expected that the price of aluminum oxide will test a lower price in the short term.

The sources point out that some spot negotiations for the delivery in August have started, but lack the actual quantity of trade.

It is said that Henan refineries offer for 2350-2380 RMB per ton this week, and the cash ratio rises to 50%, but smelters hope that the price would be 2320-2380 RMB per ton, and all credit payment.

Xinfa Group’s  spot aluminum oxide in August is quoted at 2330-2350 RMB per ton, which is expected to be the deal price about 2300-2330 RMB per ton.

"It is widely expected that the offer of Jinjiang Group is lower than that of other manufacturers, which is their consistent style, so everyone is waiting for their offer, but has yet got any news." the source of another refinery in Shanxi said.

In southern area of Guangxi, the price of spot aluminum oxide prices appears stuck in a range, but there are some people that offer the price at 2300 RMB per ton.

The deal price is expected to be 2250-2280 RMB per ton, but the actual trading is also limited.

"The market is still likely to be downward, so people are not in a hurry to purchase. This is terrible. Everyone would like to wait and see" said a source of smelting plant in northeast China.

Shanghai Futures Exchange aluminum contracts of August (12250, 45.00, 0.37%) closed at 12245 RMB per ton on Friday, less than 12465 RMB last Friday, and 12745 RMB a month ago.