
Extending the decline by RMB 90 per tonne on Thursday, September 26, the A00 aluminium ingot price has come in at RMB 14,190 per tonne, found Shanghai Metals Market. This marks the second decline in a row after three consecutive rises until Tuesday, September 24. The average prices are expected to range between RMB 14,170 per tonne and RMB 14,210 per tonne, with spot contract to be traded at a premium price of RMB 20-60 per tonne.

Since the drop in ingot price has touched upon all the major Chinese cities today, the price in Shenyang, Wuxi, Hangzhou, and Chongqing has climbed down by RMB 110 per tonne and RMB 100 per tonne to stand at RMB 14,170 per tonne, RMB 14,180 per tonne, and RMB 14,210 per tonne, respectively. In Linyi and Tianjin also, the price has come in at RMB 14,210 per tonne after declining by RMB 90 per tonne and RMB 50 per tonne. The metal price in Foshan is hovering at RMB 14,250 per tonne.
Backed on the decline in A00 aluminium ingot price, the price of aluminium alloy (A356) has recorded a plunge as well by RMB 100 per tonne to stand at RMB 14,900 per tonne, according to SMM data on September 26. The drop in alloy price today marks the fourth decline since September 12, with two intermittent restraints at RMB 15,050 per tonne on September 18 and at RMB 15,000 per tonne from September 19-25.

The prices of aluminium alloys (ADC12) and aluminium alloy (380) have shown restraint, however, at RMB 14,150 per tonne and RMB 15,000 per tonne, as of today.
Besides the drop in A00 aluminium ingot price, weaker demand and consumption of downstream aluminium is also a factor behind the decline in aluminium alloy (A356) price.
However, aluminium processing mills in Jiaozuo of Henan have shut their facilities and aluminium processors in Tianjin have cut 50 per cent production, as cities close to Beijing have strengthened environmental curbs before the National Day on October 1. This can be expected to lead to the aluminium alloy price hike, as a result of tight supply in the market.
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