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18 DECEMBER 2017 AL CIRCLE

A00 ingot prices on recovery mode in China, alloy prices see the effect of improved price

EDITED BY : BEETHIKA BISWAS 2MINS READ

The price of A00 ingot in China is on recovery mode after continuous fall through November and December.   The change could be seen after the country's National Bureau of Statistics reported that China’s primary aluminium output dropped 16.8% year on year to 2.35 million tonne in November. Though total output from January to November was up 1.7% to 29.54 million tonnes, month over month, it shows a substantial decline.

Average A00 ingot price has increased to stand at RMB 14,170/t today from RMB 14,050/t on December 15 Friday. As updated by Shanghai Metals Market, the primary ingot prices registered some increase in the domestic markets too.  The price is expected to range within RMB 14150 – 14,190 per tonne.

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SHFE contracts look set to hit the 20-day moving averages trading at RMB 14,450-14,650/t. On the spot market, discounts are likely to widen to RMB220-180/t following futures delivery.

The positive trend in A00 Aluminum prices have continued in all other individual markets in China. Average price of A00 ingot is trending the highest in the South China market at RMB 14,220/t.  The below table shows the price increase in the other major Chinese markets:

The positive momentum in primary aluminium prices is having its ripple effect on the alloy prices. Average Prices of Aluminum Alloys (ADC12) increased to RMB15,900/t from RMB15900/t. Aluminum Alloy A356 and A380 prices have also seen a rise to RMB 14,850 and 16,650 per tonne.

As for the major raw materials are concerned, as updated by Shanghai Metals Market, average spot alumina price in China has dropped further from RMB 2997 per tonne on December 15 to RMB 2977 per tonne on December 18. Domestic spot alumina prices have also dropped to RMB 2975/t today from RMB 3000/t on December 15.  Other raw materials like bauxite dropped slightly in Henan and Shanxi and prebaked anode remained unchanged.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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