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22 SEPTEMBER 2017 AL CIRCLE

A00 ingot prices in China plunge after the big leap, aluminium alloy prices follow suit

EDITED BY : BEETHIKA BISWAS 2MINS READ

An official from the Ministry of Environmental Protection confirmed that winter output cuts will not overlap with illegal capacity closures that are taking place currently. Two producers in Henan have already begun winter cuts in advance. According to SMM, this fuelled the big gains in Chinese market.

Traded prices were mainly between RMB 16,230-16,260/tonne, premium of RMB 60 /tonne over Shanghai on September 22.

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 A00 Aluminum Ingot prices dropped across all major markets after the big leap on Wednesday. The average price of A00 Aluminium Ingot would range between RMB 16,210 – 16,250/t and today’s average price stands at RMB 16,230/t, down substantially from RMB 16,600/t yesterday. A00 Aluminium Ingot in spot China market is trading at discounts of RMB 220 - 180/t. 

The fall in aluminium A00 Aluminum prices is presented in the table below:

Annuncement from MEP indicated that winter cuts may be stricter than expected which might drive more price gains before the winter control takes effect, SMM observes. SHFE 1711 aluminium hit over 6-year high at RMB17,250 /tonne on Wednesday afternoon after the two pieces of breaking news. However, SHFE aluminium would be correcting down to RMB 16,500-16,600/tonne in the near term. Traders showed slow buying interest after SHFE aluminium tumbled last night, while downstream producers purchased stock for the weekend.

The fall in aluminium ingot prices also had a ripple effect in aluminium alloy prices causing a drop in prices throughout all markets. Average price for aluminum alloys Ingot in the Chinese markets has dropped to RMB 16,650/t today from RMB 16,750/t yesterday.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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