A00 aluminium ingot price increases for the third day in a row on decline in output and stock

On the news of China’s primary aluminium output dip by 1.6 per cent from a year ago to 2.9 million tonnes in September, according to the National Bureau of Statistics (NBS), the price of A00 aluminium ingot has recorded a further rise of RMB 40 per tonne to RMB 14,000 tonnes, as on Friday, October 18, found Shanghai Metals Market. This marks the third consecutive rise ranging between RMB 13,770 per tonne and RMB 14,000 per tonne.

Significant decline in primary aluminium inventories by 61,000 tonnes to 916,000 tonnes over the week ended on Thursday, October 17, could also be attributed to the growth in A00 aluminium ingot price.  

The average prices of aluminium ingot today are expected to range between RMB 13,980 per tonne and RMB 14,020 per tonne, with a spot contract to be traded at a premium price of RMB 50-90 per tonne.

While Shenyang and Linyi have seen the highest growth today, the price has increased by RMB 70 per tonne to RMB 13,940 per tonne and RMB 14,060 per tonne respectively. In Chongqing, the price has inched up by RMB 60 per tonne to RMB 13,980 per tonne, while that in Hangzhou by RMB 55 per tonne to RMB 14,040 per tonne. Other cities like Gongyi, Tianjin, Foshan and Wuxi have seen a price growth of RMB 45 per tonne, RMB 40 per tonne, RMB 30 per tonne and RMB 20 per tonne respectively.

The decline in primary aluminium output in China has brought to 26.37 million tonnes in the first nine months of 2019, up 1.1% from the same period last year, slower than a 1.4% increase in January-August 2019.