Market sources told Fastmarkets on Monday October 14 that they have heard a number of negotiations taking place to bring cargoes of Australian alumina into China.
The latest deal for Australian material concluded at $302 per tonne on a cif China, Bayuquan port basis. This is equivalent to around $277 per tonne fob Australia accounting for a $25 per tonne freight netback.
The deal is the second Pacific cargo to be bought by a Chinese consumer in under a week. An earlier deal was concluded at $303 per tonne cif China on October 9.
“I have received more inquiries from China after they came back from the week-long National Day Holiday [October 1-7], especially due to the widening arbitrage,” an international alumina producer said.
Fastmarkets benchmark daily alumina index, fob Australia settled at $280.65 per tonne on October 11 and touched as low as $279.29 per tonne earlier that week, its...