A00 aluminium ingot price further plummets by RMB450/t as COVID undermines domestic consumption; but input costs inflate

A00 aluminium ingot price in China has nosedived for the second day in a row by RMB 450 per tonne to stand at the edge of RMB 22,000 per tonne. According to the Shanghai Metals Market, the price has come in at RMB 22,030 per tonne, with average prices estimated to range between RMB 22,010 per tonne and RMB 22,050 per tonne. The spot contract is likely to be traded at a premium price of RMB 90-50 per tonne.

In Tianjin, the primary aluminium ingot price has slumped by RMB 550 per tonne to also come in at RMB 22,030 per tonne, while the price in Wuxi, Chongqing and Shenyang has plunged by RMB 460 per tonne to score at RMB 22,020 per tonne, RMB 21,990 per tonne and RMB 21,970 per tonne, respectively. In Foshan and Hangzhou, A00 aluminium ingot price has dwindled by RMB 450 per tonne to settle at RMB 22,060 per tonne and RMB 22,180 per tonne, followed by the decrease of RMB 420 per tonne in Gongyi to RMB 21,950 per tonne and RMB 410 per tonne in Linyi to RMB 22,120 per tonne.

Slow consumption among the downstream sector due to the ongoing COVID pandemic is one of the major reasons for the downfall of the domestic ingot prices. Aluminium alloys prices neither escape from the COVID prey, with aluminium alloy (A356) price recording a plunge of RMB 450 per tonne to RMB 23,550 per tonne on Thursday, April 7. As per SMM, its average prices are expected to range between RMB 23,450 per tonne and RMB 23,650 per tonne.

Aluminium alloys (ADC12) price and aluminium alloy (A380) price have registered a downfall of RMB 150 per tonne to close at RMB 22,050 per tonne and RMB 23,050 per tonne, respectively.

But on the other hand, the average alumina spot price has further grown by RMB 3 per tonne to RMB 2,985 per tonne, found SMM. In Guizhou and Guangxi, alumina price has increased by RMB 15 per tonne to RMB 3,010 per tonne and RMB 2,990 per tonne, while the price in Henan has climbed up by RMB 5 per tonne to RMB 3,005 per tonne.

However, the Australian alumina FOB price has declined by US$25 per tonne to settle at US$415 per tonne on Thursday, April 7.

Among other primary aluminium input costs, caustic soda (32% concentration) price in Shandong has inflated by RMB 65 per tonne to RMB 1,130 per tonne. The average prices are estimated to range between RMB 1,030 per tonne and RMB 1,230 per tonne.