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03 JULY 2019 AL CIRCLE

A00 aluminium ingot price extends drop by RMB20/t; SMM shows downtrend to continue on sluggish alumina prices

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Amidst the incessant fall in spot alumina price across China, the A00 aluminium ingot price continues to record a downfall as of today, on July 3, found Shanghai Metals Market. According to SMM data, the price today has declined by RMB 20 per tonne to RMB 13,630 per tonne, marking the fourth consecutive fall. The average prices are expected to range between RMB 13,610 per tonne and RMB 13,650 per tonne, while the spot contract to be traded at the same discount and premium prices of RMB 20 per tonne.

A00 aluminium ingot price on July 3

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While all the major cities have registered a drop in aluminium ingot price today, the price in Wuxi has decided to stand out by recording a hike by RMB 10 per tonne to RMB 13,660 per tonne. Gongyi has seen the highest drop by RMB 30 per tonne, followed by Linyi, Hangzhou, and Chongqing where the ingot price has inched down by RMB 20 per tonne to RMB 13,670 per tonne, RMB 13,660 per tonne, and RMB 13,640 per tonne, respectively.

Shanghai Metals Market study on July 2 showed that a low consumption season in July-August and falling alumina prices would likely continue to weigh on Shanghai aluminium prices in the short term.

Despite a trade truce between the US and China over the weekend, the most active August aluminium contract on the Shanghai Futures Exchange posted a three-day losing streak as of Tuesday, July 2, learned SMM.

In the case of alumina, on the other hand, potential production cuts at alumina refineries are likely to buoy the raw material’s price but as of now remain insufficient in boosting prices significantly. The average price of alumina for the second half of the year is very likely to stand lower than that for the first half of the year.

Alumina refiners’ broader adoption of seaborne bauxite to ease ore supply tightness and greater alumina imports also added pressure to alumina prices.

 Aluminium LeaderSpeak 2019

In all the major Chinese markets today, the average spot price of alumina has dwindled by RMB 20 per tonne to stand at RMB 2,750 per tonne, RMB 2,740 per tonne, RMB 2,730 per tonne, and RMB 2,750 per tonne, respectively.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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