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26 FEBRUARY 2018 AL CIRCLE

A00 ingot price drops in a primarily passive China market; raw material and alloy prices remain flat

EDITED BY : BEETHIKA BISWAS 2MINS READ

According to Shanghai Metal Market, SHFE’s aluminium inventory jumped to a record high at 811,839 tonnes as on Friday February 23, as shown by SHFE data. The stocks have been rising every week since late June 2017 and it is mostly driven by lower consumption by domestic manufacturers.

There is no such significant movement in the prices of commodities and the raw materials. After the first significant gain on Friday Feb 23 to RMB 13,940, average A00 aluminum Ingot prices dropped today to RMB 13,910 per tonne. The prices are expected to move within a range of RMB 13,890-13,930. Spot discount will range within RMB 290-250 per tonne today. 

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In the individual markets primary aluminium ingot prices drop around all markets. However, in the North China market aluminium ingot prices shot up RMB 2940/t to stand at RMB 16,930 per tonne.   Primary aluminium ingot price movements in the individual markets are shown below:

On the cost front, alumina, bauxite and prebaked anode prices are unchanged today.  SMM expects alumina prices and prebaked anode prices to go down in the medium term due to lower electricity prices. Aluminium alloy prices also stand unchanged today.

Prices are expected to fall further in the short term as aluminium supply would ramp up with the reopening of new capacity. In the medium term prices are expected to rise with the pickup of domestic aluminium demand after the winter heating season with the restart of industrial activities.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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