Chinese Market Awaits Rise in Alumina Prices After Cuts Announced at Xinjiang East Hope
05 July 2017 by Staff
Despite the announcement of capacity cuts at Xinjiang East Hope’s smelter, spot alumina prices held steady on Monday at ¥2,620 per metric ton full cash terms.
The market recorded no spot trades on the day, but traders who spoke to industry media showed a willingness to trade at spot prices between ¥2,600 and ¥2,650 cash per metric ton.
“East Hope just started cutting but the amount is too small, and it’s not certain if they will continue to cut, and how much they will cut in the end, so there’s no impact on alumina prices yet,” opined a refiner from Shanxi.
A Beijing smelter and trader was cautiously optimistic on the subject.
“It will take a few days before there’s any impact on alumina, not everyone knows about the cuts yet … domestic metal prices, however, have seen some slight support,” he said.
The price of aluminium on the Shanghai Futures Exchange showed improvement, with the front-month contract closing up at ¥14,050 per metric ton on Monday, above last week’s high of ¥13,830 per metric ton and better than last month’s best of ¥13,725 per metric ton.
Alumina prices aren’t expected to rise yet, but refiners made the market aware that the July spot supply was somewhat depleted, with sellers preparing to offer August supplies later in the month.
“Everyone is focused on term supply deliveries now,” explained a refiner in Henan. “We have no more July spot to offer, so will start offering August spot after July 15.”