A00 aluminium ingot price in China extends a surge today on sluggish inventories

Primary aluminium inventories in China have once again recorded a plunge on September 20 because of improved consumption. According to the report from Shanghai Metals Market, the inventories across eight major consumption areas, including SHFE warrants are hovering at 1.623 million after being decreased by some 53,000 tonnes from last Thursday, September 13 and 22,000 tonnes from Monday, September 17.

In Wuxi and Jiangsu, the inventory is seen at 699,000 tonnes while in Shanghai, the inventory is hovering at 371,000 tonnes. The inventory is Nanhai and Guangdong is further less than the other two markets at 205,000 tonnes. To know more about the current status of primary aluminium inventories across other major Chinese markets, refer to the chart below.

In this background, the A00 aluminium ingot spot price in China is found to extend its surge today by RMB 90 per tonne to stand at RMB 14550 per tonne, SMM found. The average prices are expected to range between 14530 per tonne and RMB 14570 per tonne throughout the day, with spot discounts to settle at RMB 30 per tonne to RMB 10 per tonne.

In the east, the ingot price has climbed RMB 75 per tonne to conclude at RMB 14540 per tonne while in both south and north, the prices have increased by RMB 80 to stand at RMB 14700 per tonne and RMB 14565 per tonne, respectively.

The alumina spot price, on the other hand, remains the same today at RMB 3292 per tonne. The major markets in China have also displayed no further change after yesterday.