China Spot Alumina Rallies Yuan 100 to Yuan 2,980/mt on Costs, Demand

The China ex-works Shanxi daily spot alumina assessment rallied Monday to Yuan 2,980/mt ($454/mt) cash, up Yuan 100 from Thursday, on a bid-ask spread of Yuan 2,950-3,000/mt on rising costs and demand.

There was no assessment on Friday because Singapore was closed for a national holiday.

A Henan smelter said the alumina and aluminum markets had a lot of supporting factors now -- higher bauxite costs, potential mine closures, upcoming winter cuts, rising carbon costs, and high ingot prices.

The current price also reflected an increase of Yuan 200/mt on the week and was up Yuan 500/mt on the month.

Offers from refiners and traders were heard between Yuan 3,000/mt and Yuan 3,050/mt cash on Monday, up from Yuan 2,900-3,000/mt previously. No trades, however, were confirmed settled at these higher levels.

The last spot trade confirmed done was heard on September 1 at Yuan 2,950/mt cash for 5,000 mt, sources said.

"There's talk today that some trader sold to another trader at Yuan 3,050/mt Shanxi spot, but it's just talk, no details or confirmation," a Shanxi refiner said.

"There's also talk that Shandong alumina has been done above Yuan 3,000/mt today as well, but unconfirmed as well," a Beijing trader added.

Five refiners, smelters and a trader all put current tradable levels at Yuan 2,950-3,000/mt cash on Monday.

"Talking levels for spot in the south (Guangxi and Guizhou) are already around Yuan 2,950/mt cash now, so prices in the north will be slightly higher," a South China smelter said.

Spot alumina prices are expected to break above Yuan 3,000/mt by the end of the week, with some sellers heard eying Yuan 3,500/mt in the near term, sources said.

On Monday, the front-month aluminum contract on the Shanghai Futures Exchange closed at Yuan 16,380/mt, up from Yuan 16,285/mt a week earlier and from Yuan 14,565/mt a month earlier.