SHANGHAI, Mar 24 (SMM)—Trades in the domestic alumina market remained thin last week. Prices under negotiation and traded prices in north China were largely stable between 2,340-2,350 yuan/mt. Some aluminium plants in north-west China made purchase. Trades were muted in south-west China where aluminium plants secure supply under long-term contracts Domestic alumina prices are expected to remain largely stable in the short term as supply and demand are basically balanced or tend to shift to a slight surplus.
In the overseas market, sea freight rate from Western Australia to major ports in China has risen to $40/mt, which severely hurt buying interest of global buyers, except for aluminium plants in India and Malaysia that have urgent needs. Alumina FOB prices frequently hit new lows. The latest transaction was done at $289/mt FOB in Western Australia, down $5/mt from the previous transaction. Chinese buyers also made no inquiry. Smelters in east Inner Mongolia began to turn to domestic alumina plants and traders. Loss on alumina imports stood at 121 yuan/mt last Friday. High sea freight will continue to constrain China's alumina imports in the short term.
