A00 aluminium ingot price in China dwindled over the week despite three intermittent hikes

As the week has come to an end, let’s take a quick recap at the movements of aluminium price and the prices of raw materials over the week across China. According to Shanghai Metals Market, the A00 aluminium ingot price started the week with a decline from RMB 13,890 per tonne to RMB 13,830 per tonne, as of June 24, despite the continued slump in primary aluminium inventories. On June 24, the inventories across eight major consumption areas, including SHFE warrants, were at 1.061 million tonnes after declining by 20,000 tonnes over the weekend. Following that, the A00 aluminium price rose for the next three consecutive days to stand at RMB 13,930 per tonne, as of June 27, backed by the tight supplies and lower stock arrivals which also resulted in a further fall of inventories to 1.051 million tonnes. Then on the next day, June 28, the price dropped and winded up the week at RMB 13,820 per tonne. With this, the A00 aluminium ingot price remained week-on-week down compared to the price of RMB 13,890 per tonne on June 21.

This is also to be noted here that even though the A00 aluminium ingot price recorded hikes for the three days in a row this week and registered a W-o-W rise of RMB 10 per tonne to RMB 13,930 per tonne on June 27, in comparison to RMB 13,920 per tonne on June 21, the ingot price yet displayed an overall downward trend. With the end of every week over the month, the aluminium ingot price continued to dwindle to RMB 14,060 per tonne on June 6, RMB 13,970 per tonne on June 14, RMB 13,890 per tonne on June 21, and RMB 13,820 per tonne on June 28.

The spot contract was expected to be traded at a discount price of RMB 10 per tonne to a premium price of RMB 30 per tonne throughout the week.

The average spot price of alumina, on the other hand, declined through the week with no intermittent hike. After showing restraint on the first day of the week, June 24, the alumina price continued to drop to RMB 2,841 per tonne until the week ended on June 28. With this, the average spot price of alumina registered a W-o-W decline by RMB 122 per tonne at the end of the week.

The Australian alumina FOB price remained restrained at US$330 per tonne from June 24 to June 26 and then declined to US$323 per tonne on June 27 and continued at it until the next day.

This week, on June 27, 6063 aluminium billet inventories rose across five major consumption areas in China to come in at 77,700 tonnes from 71,700 tonnes on June 20. But despite the inventory hike on higher arrivals to warehouses, the price of aluminium alloys (ADC12) on the same day recorded no decline, rather continued to show restraint at RMB 14,200 per tonne which started since June 17. However, a day later, on June 28, the price dropped to RMB 14,100 per tonne to wind up the week.