As reported by Shanghai Metals Market, Average A00 ingot price dropped RMB 250 per tonne today to stand at RMB 14,700 per tonne and expected to move within a range of RMB 14,680-14,720. Spot discount will range within RMB 120-80 per tonne today. Aluminium ingot prices registered a drop in all individual markets in China. The following table shows the trend in ingot price in the domestic markets:
{alcircleadd}Average prices of aluminium alloys have registered a drop in all markets today following the fall in A00 ingot price. Average Aluminum Alloys (ADC12) price stands at RMB 16150 per tonne. Aluminium Alloy (A356) prices dropped to RMB 15,400 per tonne and Aluminium Alloy (A380) prices dropped to RMB 16,900 per tonne.
SMM observes that the December operating rates of aluminium sheet, strip and foil producers in China was up 2.9 percentage points from November levels to stand at 68.4% driven by growing export orders.
Lower SHFE/LME price ratio has boosted regular aluminium exports. Even the products like extrusion panels and common alloy sheet that have been labelled as countervailed in the U.S. are drawing more export orders. Companies involved in the US anti-subsidy investigation on common alloy sheet increased their production rate to ship their products before the initial ruling scheduled on February 1.
Chinese domestic demand was stable in December due to steady aluminium prices. Increased consumption of packaging products ahead of Chinese New Year supported demand for aluminium sheet used in packaging.
This news is also available on our App 'AlCircle News' Android | iOS