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03 AUGUST 2018 AL CIRCLE

A00 aluminium ingot price grows on declining inventory due to limited arrivals; alloys price remains unchanged

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Primary aluminium inventory across eight major consumption areas in China, including SHFE warrants, shrank 14,000 tonnes further from last Thursday, July 26, to stand at 1.78 million tonnes as of Thursday, August 2, 2018, Shanghai Metals Market research found.

Limited arrivals from smelters accounted for the drop, although slower from a week-on-week decline of 28,000 tonnes recorded on July 26. In the meanwhile, the inventories had gained during the week by 1,000 tonnes from Monday, July 30.

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Below chart shows the inventory status across all the Chinese markets in more details:

On the face of declining inventory and tight supply in the market, A00 aluminium ingot price climbed today, August 3, to RMB 14280 per tonne after a drop in past two days in a row, SMM learned. The average prices are expected to range between RMB 14260 per tonne to RMB 14300 per tonne, with spot discounts to settle at RMB 80 per tonne to RMB 40 per tonne.

According to another update by SMM, 6063 aluminium billet inventory grew five weeks in a row across all the major markets in China as of Thursday, August 2. It increased by 5800 tonnes from last Thursday, July 26, to stand at 85,200 tonnes, SMM data showed. However, the rise slowed from a week-on-week increase of 8600 tonnes from last Thursday.

Below chart shows the inventory status across all the Chinese markets in more details:

 The price of aluminium alloy (ADC12) registered no change, as of August 3, hovering at RMB 15,550 per tonne since the beginning of the previous month. Aluminium alloys (A356), also showed restraint today at RMB 14950 per tonne, after a registering a decline on August 2, from RMB 15,050 per tonne. Aluminium alloy (A380) also continued to remain unchanged at RMB 16,300 per tonne, as of August 3, 2018.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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