China's domestic spot alumina prices stood rangebound Friday, with thin trade activity throughout the week ahead of July spot negotiations that will largely get underway next week.

Platts' ex-works Henan alumina assessment stood at a stable Yuan 2,400/mt ($393/mt) for 70:30 cash and credit payment terms Friday, unchanged from Thursday and a week ago, but down Yuan 110 on the month.

In Shanxi, spot prices closed the week at Yuan 2,330-2,350/mt cash, flat from Thursday, but down from Yuan 2,350-2,380/mt at the start of the week.

Down south in Guangxi, spot offers were stable around Yuan 2,330/mt cash, with tradable levels pegged at Yuan 2,300/mt, in line with a week ago.

Spot alumina prices are expected to test lower levels for July spot, as market sentiment stayed weak on the back of continued low domestic aluminum prices. But room to move downwards will be limited by steady demand. Despite the soft metal market, no smelter cuts have been reported, sources said.

Anticipation of a continued rise in smelter capacity from Xinjiang later this year, as well as possible refinery cutbacks if weak alumina prices prevail, will also help support alumina, some sources added.

"There's still room for alumina to test lower in July, but prices should stabilize soon," a Shanxi-based refiner said.

"Prices are still weak, but the movement downwards has slowed this week, so we expect the levels to be more stable in the near term," a Henan-based smelter added.

Clearer direction for spot alumina prices is expected next week when July spot trades are likely to pick up, sources said.

The front month July aluminum contract on the Shanghai Futures Exchange closed at Yuan 12,740/mt Friday, up from Yuan 12,655/mt last week, but down from Yuan 13,155/mt a month ago.