The spot alumina price in China's Henan was rangebound Wednesday at Yuan 2,860/mt ($465/mt) for 70:30 cash and credit payment terms, unchanged from September 30, as the market returned from an extended break from October 1-7 to celebrate National Day.
On Wednesday, Henan refiners' offers remained at Yuan 2,900/mt cash, with tradable levels pegged at Yuan 2,850-2,900/mt cash to partial credit terms.
Spot trade was lacking as market participants took a wait-and-see attitude on their first day back, especially in view of weaker domestic aluminum prices.
The front-month October aluminum contract on the Shanghai Futures Exchange closed at Yuan 13,920/mt on Wednesday, down from Yuan 13,975/mt on September 30, and down from Yuan 14,585/mt at the beginning of last month.
"A lot of people also bought earlier before the holidays, so those are going to be taking deliveries now, not many will be buying," a Beijing-based trader said.
"Buyers are also cautious as metal prices remain weak," he added.
A refiner in Henan agreed, adding that there are now limited October spot stocks available, which should keep prices from falling back in the near term despite the weak metal prices.
Prevailing bauxite concerns and rising imported alumina prices are added factors supporting domestic alumina, according to sources.
Spot alumina prices are also unlikely to fall back with winter season restocking demand in the fourth quarter and the lack of smelter cutbacks, but further increases would be curbed on the weak metal prices, traders and smelters said.
Meanwhile, in neighbouring Shanxi province, spot alumina prices were also steady Wednesday with offers around Yuan 2,850/mt cash and tradable levels at a minimum Yuan 2,800/mt cash.
Down south in Guangxi, offers continued to hover around Yuan 2,700/mt cash, with tradable prices pegged at Yuan 2,600-2,650/mt.
