A00 aluminium ingot price in China extends its surge over the weekend on continued tight supply

The A00 aluminium ingot spot price has extended its surge over the weekend, ending on August 27, from RMB 14610 per tonne, as of August 24, to RMB 14650 per tonne, Shanghai Metal Market found. The average prices are expected to range between RMB 14630 per tonne and RMB 14670 per tonne, with spot prices to settle at RMB 80 to RMB 40 per tonne.

In the east and south, the ingot prices climbed RMB 30 per tonne to stand at RMB 14645 per tonne and RMB 14800 per tonne respectively; while in the north, the price registered a growth by RMB 45 per tonne to close at RMB 14615 per tonne.

The aluminium ingot price has been rising since the early last week backed on tight supplies to the inventories. Moreover, the forthcoming winter heating season in China have already started resulting in cut down of productions and thereby, affecting the supplies in the market and pushing the prices up.

Meanwhile, on August 23, the ingot price had plunged for a day from RMB 14590 per tonne to RMB 14560 per tonne, and from RMB 14720 per tonne to RMB 14695 per tonne particularly in the South due to active trading. Most transactions in Guangdong were seen at RMB 14690 per tonne to RMB 14700 per tonne with a Guangdong-Shanghai price spread of RMB 160 per tonne.

According to another update from SMM, China will improve the monitoring and control of smog across key regions through satellite remote sensing. Covering around 28 cities in the Beijing-Tianjin-Hebei region and nearby areas, a grid network will examine the density of PM 2.5, a major pollutant in the atmosphere by October, said Ministry of Ecology and Environment said on Sunday August 26. 

As per the plan, the network would expand to 11 cities in the Fen-wei plain from October and further expand to 41 cities on the Yangtze River Delta from February 2019.