SHANGHAI, Apr 21 (SMM)—Spot transactions in the domestic alumina market improved slightly last week. Traders and downstream producers in north China made purchase, with prices in Shanxi up slightly to 2,340-2,350 yuan/mt. Spot trades remained muted in south China, where trades were mostly under long-term orders. There were few quotations at Bayuquan, and aluminium plants intended to buy at 2,420 yuan/mt.
In the overseas market, a deal for 30,000 mt of alumina was done at $273/mt for shipments from Western Australia in late June. Import loss remained nearly 130 yuan/mt.
The for price outlook, there are both positive and negative factors. Positive factors include rigid downstream demand and increased purchase by traders, continued decline in the amount of imported alumina, rising ex-factory prices due to lower freight rates. Negative factor comes from Jiaokou Xinfa, which resumed two 700,000 mt/year alumina production lines, and the product is expected to be produced in about 40 days.
Alumina prices are expected to stabilise or rebound slightly in the short term. SMM will pay attention to market attitude towards the launch of alumina futures contracts and changes in actual market supply and demand.
