COMMENT: Plummeting discounts, alumina sell-offs attest to value of indices

It is no longer the case that buyers can pick up alumina from Brazil at a significant discount to Australian material. Today, discounts are felt to be as low as $2 per tonne.

Typically a discount of between $10 and $15 per tonne, accounting for higher freight costs and shipping times from the Atlantic to China, has been the norm. Today it is more like $2 per tonne as market tightness, including closures at the Point Comfort and Suralco refineries, takes effect.
Some market sources say they will be willing to buy at parity when the time to buy comes.

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Published

Charlotte Radford

April 10, 2016

15:00 GMT

London