Alumina traders in China have responded with skepticism to Qianhai Mercantile Exchange's (QME) plans to internationalize its yuan-denominated prices and list them on foreign exchanges such as Hong Kong Exchanges & Clearing Market (HKEX), Fastmarkets has learned.
QME made its debut in October this year when it launched a spot domestic alumina price. But liquidity has been slow to build up and few alumina market participants in China are using the spot platform. Because of this, QME's international plans may be premature and the focus should first be on becoming the accepted benchmark in China, traders said. "I don't think the QME price is representative of the market because right now only two companies are active on the platform," a buyer source in Gansu province said. "QME was founded not long...