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30 AUGUST 2018 AL CIRCLE

A00 aluminium ingot price dips on gaining inventories due to increasing supplies and weak consumption

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The primary aluminium inventories across eight major consumption areas in China have extended gains over the week as arrivals rebounded and consumption in Guangdong weakened, Shanghai Metals Market found.

As of today, August 30, stocks, including SHFE warrants, have grown by some 9000 tonnes from a week ago and 8000 from Monday to stand at 1.747 million tonnes.

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The below chart shows the current status of the inventories in major Chinese markets:

In this background, the A00 aluminium ingot price has recorded a little plunge to stand at RMB 14810 per tonne. Till yesterday, the price was at RMB 14820 per tonne. This shows that today the ingot price has dipped by RMB 10 per tonne. The average prices are expected to range between RMB 14790 per tonne and RMB 14830 per tonne, with spot discounts to settle at RMB 80 and RMB 40 per tonne.

In the south, the ingot price has dropped RMB 20 to RMB 14930 per tonne. In the east, the price remained the same at RMB 14830 per tonne while in the north, the price surged RMB 10 to conclude at RMB 14770 per tonne.

According to another update by SMM, inventories of aluminium billet have also grown across all the major Chinese consumption areas as the low season persisted.

As of today, August 30, stocks of 6063 aluminium billet have increased by 2,700 tonnes from a week earlier to stand at 105,800 tonnes. The growth of some 5,100 tonnes of stocks in Foshan and Guangdong could be a reason for the increase.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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