Asia Pacific alumina participants divided over rapid price rise

The price of alumina closed steady in the Asia Pacific region at USD 419.50 per tonne FOB Australia unchanged from a day ago.

Platts' Australian price benchmark has climbed USD 13.50 per tonne on the week and USD 17.50 per tonne in the past month.

A producer reported the sale of 30,000 tonnes parcel late Wednesday at USD 420 per tonne FOB Australia cash against documents for shipment in the second-half of June. The deal which Platts was unable to immediately verify was in addition to 35,000 tonnes trade done late Tuesday between two producers at the equivalent of USD 419.50 per tonne FOB Australia with 30 days credit for shipment between mid and the H2 of June.

The buying producer said that it was in talks to acquire a June cargo at USD 415 per tonne FOB Brazil. The company said it thought the Pacific region was fetching a premium of about USD 4 per tonne to the Atlantic market. Due to problems at Gladstone, the Pacific has become tighter and more in demand in the last couple of weeks.

Market participants are divided over the rapid pace of the price rise. We consider this price to be a good $10 above the market. The company was believed to have been a bidder for the cargo. The buyer of the USD 419.50 per tonne trade said that there was nearby tightness and not a lot of sellers. There was stronger buying interest than selling interest.

The seller of the USD 419.50 per tonne cargo said that it had received about 10 bids. Recent supply and shipment issues in Australia and Brazil relating to Queensland Alumina and Alunorte were known to have created new demand for June especially among producers and traders. At least one consumer was known to have considered reducing its term contract tonnage to help ease pressure on its supplier.

Refiners in Henan offered cargoes at CNY 2,750 per tonne. Smelters said that they were looking around Yuan 2,720 per tonne. Market participants said demand for spot cargoes was expected to pick up over April for restocking and aided by a recent recovery in domestic ingot prices.