The Platts Chinese spot alumina price ex-works Henan slipped further on Tuesday to Yuan 2,530/mt ($408/mt) at 30% credit payment terms, down another Yuan 10/mt from Monday, after dropping Yuan 10/mt Thursday.
Cash prices were also pegged lower at around Yuan 2,500/mt, compared with a previous 2,520-2,530/mt.
Henan refiners said offers remained at Yuan 2,540-2,550/mt, but admitted that trades could not be done at those levels.
One Henan refiner said tradable levels now were mostly at Yuan 2,520-2,530/mt for 20-30% credit, and around Yuan 2,500/mt for cash.
"We've heard some trades can even be done below Yuan 2,500/mt at Yuan 2,480-2,490/mt, but those are not reflective of the market," he said.
Another Henan refiner said he had not heard any cash trades below Yuan 2,500/mt, but did not rule out the possibility, as the market remained on a downtrend.
A Henan smelter said it anticipated lower prices, so was currently using up term contract supplies.
A Northwest Chinese smelter said it was quoted at around Yuan 2,525/mt partial credit terms by Henan refiners this week, and remained in talks.
"Prices are on a downtrend still, but there's very limited room left to lower, as many are already at cost now," a Beijing-based trader said.
Factors pressuring alumina remained weak aluminum prices, recent talk of some major traders pushing to sell in anticipation of further price falls, and expected new refinery capacities this month in Shanxi and Inner Mongolia.
Possible new government power subsidies could also mean less than expected smelter cuts and add further pressure to an already extended weak metal market.
The front month May aluminium contract on the Shanghai Futures Exchange closed at Yuan 14,535/mt Tuesday, marginally up from Yuan 14,515/mt last week.
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