A00 aluminium ingot price further up by RMB200/t enabling smelters to yield profit; Aluminium alloy price returns to RMB20000/t

A00 aluminium ingot price in China has recorded a hike for the third day in a row by RMB 200 per tonne to settle at RMB 18,840 per tonne, learned the Shanghai Metals Market data. The average prices are expected to range between RMB 18,820 per tonne and RMB 18,860 per tonne, with a spot contract to be traded at a discount price of RMB 120-80 per tonne.

Compared to a week ago, China’s A00 aluminium ingot price has edged RMB 610 per tonne higher than RMB 18,230 per tonne as of January 12. The aluminium ingot price rally since early January has enabled many smelters to return to the profit-making territory. This week smelters reported an average profit of RMB 738.7 per tonne. 

Many provinces have witnessed the aluminium ingot price increase by RMB 200 per tonne on January 19, such as Foshan, Hangzhou, Shenyang, Tianjin and Linyi. According to SMM data, the ingot price in Foshan and Hangzhou stands at RMB 18,890 per tonne and RMB 18,835 per tonne, while the price in the rest of the provinces has settled at RMB 18,790 per tonne. Wuxi and Chongqing have reported a growth of RMB 210 per tonne to RMB 18,825 per tonne and 18,870 per tonne, while Gongyi has posted an increase of RMB 180 per tonne to RMB 18,650 per tonne.

Low-carbon aluminium price and high-purity aluminium (99.99%) price have also ascended by RMB 200 per tonne to hover around RMB 19,470 per tonne and RMB 26,700 per tonne as of January 19, found SMM.

In line with the A00 aluminium ingot price rise, aluminium alloy (A356) price has also advanced by RMB 200 per tonne to return to the level of RMB 20,000 per tonne on Thursday, January 19. The average prices are estimated to range between RMB 19,800 per tonne and RMB 20,200 per tonne.

Aluminium alloys (ADC12) price and aluminium alloy (A380) price have grown by RMB 100 per tonne to settle at RMB 19,700 per tonne and RMB 20,700 per tonne, respectively.

Among primary aluminium input costs, domestic aluminium powder price has inched up by RMB 0.20 per kg to stand at RMB 20.40 per kg, with average prices likely to range between RMB 20.3-20.5 per kg.