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13 FEBRUARY 2018 AL CIRCLE

A00 ingot price gains on increasing export orders despite growing primary aluminium inventory in China

EDITED BY : BEETHIKA BISWAS 2MINS READ

According to the data from Shanghai Metals Market, China’s social inventory of primary aluminium hit a record high of 1.81 million tonnes on Monday February 12, due to sluggish trading ahead of the Chinese New Year holiday next week. This is up from 1.78 million tonnes recorded on Thursday February 8.

Inventory details in the major cities in China are as follows:

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On the face of growing inventory and low consumption, most of the commodities and raw materials remain flat pricewise. The increase in LME aluminium inventory and the indication of growing Chinese export orders have lifted the domestic A00 ingot prices today. After the fall yesterday, average aluminium Ingot prices gained substantially to stand at RMB 14,010 per tonne. The prices are expected to move within a range of RMB 13,990-14,030. Spot discount increased to a range of RMB 370-330 per tonne today.  Average A00 ingot prices saw the biggest jump in East China market at RMB 285 per tonne and reached RMB 14,135 per tonne.  SHFE aluminium is expected to trade at RMB 14,300-14,500 per tonne.

Though alloy prices have not been impacted much by the volatility in primary ingot prices, Aluminum Alloy (A356) prices have registered a drop to stand at RMB 14,600 per tonne and Aluminum Alloy (A380) prices dropped to RMB 16,700 per tonne.

On the cost front, average spot alumina prices remain flat today. Bauxite and prebaked anode prices too registered no change today but expected to go down in the short term due to lower electricity prices.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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