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03 SEPTEMBER 2018 AL CIRCLE

A00 aluminium ingot price dips in China despite weakened inventories; Pre-baked anode price grows high

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

After gaining over the last week ended on Thursday, August 30, the primary aluminium inventories across eight major consumption areas in China shrank over the weakened as limited deliveries arrived, Shanghai Metals Market learned.

As of today September 3, the primary aluminium stocks, including SHFE warrants, dipped by some 12,000 tonnes from Thursday to stand at 1.735 million tonnes, according to SMM data.

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The inventory in Wuxi and Jiangsu stood at 727,000 tonnes; while in Shanghai, Nanhai and Guangdong, and Gongyi and Henan, the inventories were heard at 386,000 tonnes, 238,000 tonnes, and 162,000 tonnes, respectively. For more detail, refer to the chart below:

But despite the drop in inventories on limited arrivals, the A00 aluminium ingot spot price has registered a further decrease from RMB 14770 per tonne, as of August 31, to RMB 14720 per tonne. This shows the price plunged by RMB 50 per tonne on September 3. The average prices today are expected to range between RMB 14700 per tonne and RMB 14740 per tonne, with spot discounts to settle at RMB 70 to RMB 30 per tonne.

In both east and north market, the ingot spot prices have also plunged by RMB 50 per tonne to conclude at RMB 14725 per tonne and RMB 14730 per tonne, respectively and in the south, the price dropped by RMB 40 per tonne to clock at RMB 14840 per tonne.

According to another latest update by SMM, domestic producers have accepted an upward adjustment of RMB 220 per tonne in Weiqiao’s purchasing price of the pre-baked anode as of Monday, September 3.

This brought September’s price to RMB 3500 per tonne in cash and RMB 3535 per tonne on acceptance.

This agreement followed after producers opposed Weiqiao’s initial adjustment last week and demanded higher prices.

In this background, the pre-baked anode spot price in China has shown a sweeping growth right from RMB 3315 per tonne, as of August 31, to RMB 3535 per tonne on September 3. This indicates that the pre-baked anode spot price has registered change after more than a month when it grew last from RMB 3135 per tonne to RMB 3315 per tonne on August 1, 2018.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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