Chinese alumina buyers sweep up seaborne cargoes amid stronger yuan

Chinese alumina market buying interest in seaborne cargoes grew significantly this week following a steady appreciation of the yuan since Monday, with many hoping to lock in relatively cheaper material compared with the domestic market.

A higher volume of inquiries and deals over the course of the week took the benchmark alumina index on an uptrend since Tuesday.
Fastmarkets’ alumina index, fob Australia rose to $272.83 per tonne on Wednesday - its highest since early September - following deals concluded at $290 per tonne cif China and $274 per tonne fob Australia.
The market reported another deal concluding at $275 per tonne for 30,000 tonnes, fob Australia on Thursday.
“We are negotiating with an international seller at a price around $275 per tonne as we consider this could save us some money compared with [Chinese] domestic material,” one Chinese domestic alumina trader told Fastmarkets earlier on Thursday before the deal was reported.

Market sources said seaborne cargoes remain profitable at...

Published

Hui Li

October 15, 2020

14:00 GMT

Shanghai