India's Hindalco awarded last Friday a sell tender for a 25,000 mt alumina parcel at around $338/mt FOB Gangavaram/Visakhapatnam LC at sight, for shipment between March 1 and 7, industry sources said Monday, February 3.

The tender closed January 27 with bids to be valid until January 30.

Market participants have said previously Hindalco's exports are often shipped to China.

In past weeks and months, a number of China-based sources have said they would expect Hindalco's alumina to trade at a discount to Indian material from Nalco, as Hindalco's Utkal refinery is relatively new and its output specs still in the process of being refined.

Sources also said it was less cost efficient to ship 25,000 mt compared with Nalco's typical shipment size of 30,000 mt.

In addition, although the Utkal alumina is exported in bulk, the material is transported to the loading port in bags, thereby stretching the loading operations time and adding to the cost of freight.

A Chinese consumer/reseller put Hindalco's alumina at a $5-7/mt discount to Nalco, but three other consumer, producer and trader sources were less certain.

Hindalco may not have a history of alumina exports that is established enough for participants to form an idea of a price differential to Nalco, or the Australian market, they said.

The 1.5 million mt/year refinery in Utkal, in the eastern state of Odisha, started up in late 2013 and began alumina exports in early 2014.

Platts assessed the Western Australian alumina market at $341.50/mt FOB Monday.

The assessment has fallen $4.50/mt in the last week and $13/mt in the last month due to global stock build, poor smelting margins in China and associated credit and cash constraints.