A00 ingot and alloy prices continue downward trend in China, raw material prices remain unchanged

A00 ingot prices in China drop across all markets driven by poor consumption and increasing stock. The winter capacity cut has not been able to change the scenario substantially till date. As updated by Shanghai Metals Market, average A00 aluminium ingot price has dropped RMB 260/t from RMB 15,690/t on November 8 and stands at RMB 15,490/t today.  A00 ingot prices have been hovering much below RMB 16,000/t mark for a long time. The drop in A00 ingot prices can be seen in the graph below:

Aluminium alloy prices continue to drop in China keeping pace with steady drop in aluminium ingot prices. No new orders have been registered in November. In East China’s spot market aluminium is trading at a discount of RMB 50-10 per tonne.

According to SMM the latest average price of Aluminum Alloys (ADC12) dropped to RMB 16,350/t today on November 9 from RMB 16,400/t yesterday and expected to move within a range of RMB 16250 – 16350 per tonne.  The drop in average prices of different grades of aluminium alloy can be seen in the following table.

Raw material prices registered no change in the China markets today. Aluminium powder prices have registered a slight drop to stand at RMB 19.2 per kg.

Non-ferrous metal in SHFE are dropping led by tin. Aluminium price will keep weak and volatile in the short term. There will be further downward movement of price below RMB 16,000/-. Al1801 aluminium contract opened at RMB 15,790/t today after closing at RMB 15,475 per tonne yesterday.