
Weak alumina prices have not much affected the primary ingot prices in China as the A00 ingot prices have seen another rise across all markets today. Average A00 ingot price stands at RMB 14,380 per tonne today and expected to move within a range of RMB 14,360-14,400 today. Christmas trading holiday in LME has temporarily improved the market in China lifting the aluminium prices. The momentum of average A00 ingot price in last one month can be seen in the following graph.

SMM predicted SHFE aluminium would test the RMB 15,000/t level, trading at RMB 14,700-15,000/t. Spot discount, on the other hand, is set to go deeper at RMB 370-330/t today. However, in the short and medium term aluminium prices in China would be under pressure because of growing inventory despite the capacity cut programme. Winter cut has not led to supply shortage and aluminium ingot inventory remained high because of capacity swapping.
Today’s increase in A00 ingot price in the major Chinese markets can be seen in the following table:

Higher primary aluminium prices have also lifted aluminium alloy price across all markets. Average prices of Aluminum Alloys (ADC12) have increased to RMB 16,000 per tonne today. Aluminum Alloy (A356) and Aluminum Alloy (A380) prices have increased to RMB 15,050 and RMB 16,750 per tonne respectively.
As updated by Shanghai Metals Market, other raw materials like alumina, bauxite and prebaked anode remained unchanged today.
Responses







