Thursday's Platts Australian alumina assessment at $338/mt FOB was $1 higher than Wednesday, with bids lifted by new buying interest from China.

Chinese participants attributed renewed interest in imported alumina to higher domestic aluminum prices in the last week, a stronger yuan against the dollar, and attempts by domestic refiners to raise local alumina prices.

Buying interest for Handysize lots was seen at $350-$351/mt CIF China, with selling interest from $355/mt. Larger parcels comprising 55,000 mt may be available at a discount, sources said.

A Chinese consumer reported being shown large Brazilian tonnage at around $350/mt CIF for shipment in April.

A number of consumer and producer sources thought it plausible for the next standard, Handysize trade to settle at around $352/mt CIF China.

Platts assessed the Handysize freight rate at $14/mt on Wednesday for a 30,000 mt shipment in April from Western Australia to Lianyungang.

The Platts China ex-works Henan alumina spot price continued at Yuan 2,630/mt ($427/mt) for 70:30 cash and credit payment terms Thursday in thin trading.

Fresh direction is expected next week at a domestic industry event, where domestic April spot talks are slated to start, and new term contract pricing mechanisms will be discussed, market participants said.

The Seventh China Alumina and Aluminium Market Summit will be held in Wuhan March 23-25.

"We are looking to discuss and get clarity on how the new term contracts will be calculated next week, as there's talk to move it to index based, rather than SHFE based, so we'll see," a South China smelter source said.

"All eyes are also on how domestic metal prices will move, if they can sustain the increases seen this week...if prices can move above Yuan 13,500/mt and stay, then alumina spot can probably reach Yuan 2,700/mt," a Shandong trader added.

China's top alumina refiners -- Aluminum Corp of China (Chalco), Shandong Xinfa Group, and Jinjiang Group -- raised domestic spot alumina offers to a minimum Yuan 2,700/mt last week.

But no trades at the higher levels have been reported done to date.

The front month April aluminum contract on the Shanghai Futures Exchange closed at Yuan 13,220/mt Thursday, compared with Yuan 13,100/mt a week earlier, and Yuan 12,915/mt two months earlier.