The Platts China spot alumina price ex-works Henan basis firmed another Yuan 20/mt ($3.24) Thursday to settle at Yuan 2,510/mt for 70:30 cash and credit payment terms, after rising Yuan 20/mt Wednesday from Yuan 2,470/mt Tuesday.
Prices have rallied in the past two days on the back of tighter spot supply, continued strong demand expected for the fourth quarter, and higher domestic aluminum prices, multiple market participants said.
On Thursday, the front-month September aluminum contract on the Shanghai Futures Exchange closed at Yuan 14,380/mt, up from Yuan 14,300/mt last week, and also Yuan 14,135/mt a month ago.
Henan refiners' offers for spot were heard at Yuan 2,500-2,550/mt Thursday, widening from Yuan 2,480-2,540/mt Wednesday, and up from Yuan 2,450-2,500/mt earlier in the week.
"Sellers have raised offers to very high levels, as they are speculating that Q4 will be strong," a Henan smelter said. "Some are also holding back on selling now in anticipation of higher prices, so it's hard to get stocks."
"You can't get any Henan alumina now below Yuan 2,500/mt cash. We expect to see spot around Yuan 2,530/mt cash in September," a Henan refiner said.
In neighbouring Shanxi province, spot offers for alumina were steady at Yuan 2,480-2,500/mt cash Thursday, with tradeable prices pegged at Yuan 2,450-2,480/mt, up from mostly around Yuan 2,450/mt previously.
Down south in Guangxi, offers were heard at Yuan 2,380-2,400/mt cash in the last couple of days, up from Yuan 2,350-2,380/mt previously. Tradeable levels were pegged at a minimum Yuan 2,350/mt.
Besides strong sentiment for the fourth quarter, firmer imported alumina prices recently also added support to domestic alumina, sources said.
The Platts Australian alumina daily assessment stood at $323.50/mt FOB Thursday, up $2.50/mt from Wednesday and up $3.50/mt on the week.
