of its aluminum output of 8.4% year on year to 6.45 million mt.
This led China to slash its alumina imports by 29% year on year in January and February to around 490,000 mt in total, data from the customs office showed, as domestic tons were readily available and cheaper.
Typically in a long global market, alumina market participants do not expect the price of Western alumina to stray far from China's domestic prices. This is because historically, China is technically self-sufficient in alumina and can be quick to pare down local production once the arbitrage window opens for imports.
Australian alumina is trading at premiums of $14.50/mt and Yuan 95/mt to Chinese tons, in import parity terms. A number of consumer and trade sources think the premium should not reasonably exceed Yuan 60/mt (around $9/mt).