Australian Alumina Price Stable as Participants Eye Bauxite, Gove Developments

The Australian alumina market was stable Monday, leaving Platts daily price assessment unchanged at $324.50/mt FOB.

Market participants said the primary price drivers were likely to be concerns about Indonesia's bauxite export restrictions, and decreased Australian alumina supply from the closure of the Gove refinery. A number of producers, consumers and traders have said they were expecting bauxite shipments from Indonesia to experience temporary disruptions in 2014. A Chinese consumer-and-trader reported turning down a request by a western trader to swap Australian alumina for domestic material. In the last couple of days, market participants have put alumina bid, ask levels at $350-351/mt CIF China against $355-360/mt. A trader said he thought the market may be closer to circa $351/mt CIF China and that $360/mt may be a stretch.

Platts assessed the alumina handysize freight rate at $27/mt for a 30,000 mt shipment in January from Western Australia to northeast China.

Platts daily China alumina assessment for Henan province was stable at Yuan 2,520/mt ($411/mt) ex-works for 70:30 cash and credit terms, with cash prices around Yuan 2,490/mt. Cash prices in Shanxi province were Yuan 2,450-2,480/mt, and Yuan 2,335-2,350/mt in the Guangxi region.

http://www.platts.com/latest-news/metals/sydney/australian-alumina-price-stable-as-participants-26530160