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14 NOVEMBER 2017 AL CIRCLE

A00 ingot prices in China continue downward trend, the industry awaits winter capacity cut

EDITED BY : BEETHIKA BISWAS 2MINS READ

A00 ingot prices in China drop across all markets driven by poor consumption and increasing stock. The capacity cut till date has not been able to change the inventory scenario substantially till date. As updated by Shanghai Metals Market, average A00 aluminium ingot price has dropped further to RMB 15,310/t on November 14 from RMB 15,360/t yesterday.  The steady drop in A00 ingot prices can be seen in the graph below:

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As per latest data released by State Statistics Bureau, in October China’s primary aluminium output drops 7.5% to 2.55 million tonnes on yearly basis. The figure from January to October is 27.23 million tonnes, up 3.7% on yearly basis. The figure is down 2.3 percent from 2.61 million tonnes in September 2017 and from 2.73 million tonnes in October, 2016.

The drop in aluminium A00 Aluminum prices have continued in all other individual markets in China. A00 ingot prices have registered a drop from RMB 40/t to RMB 70/t across all markets. In the spot market aluminium is trading at a discount of RMB 50-10 /tonne. The below table shows the price drop in various markets:

In the Shanxi province, during the first three quarters, electrolytic aluminium output stood at 741,000 tonnes, up 21.9% from the same period of 2016. Alumina output stood at 14.229 million tonnes, up 13.2%. On a positive note, during January to August, the metallurgical industry gains sales revenue of RMB 205.59 billion, rising 29.9%. Profits reach RMB 8.87 billion, up RMB 9.27 billion compared with loss last year. This was mostly driven by higher metal prices in the period and good domestic consumption.

The actual winter capacity cut that will start from November 15  will determine the future course of aluminium price in the short and medium term.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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