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21 NOVEMBER 2017 AL CIRCLE

A00 ingot prices plunge below RMB 15,000/t; alumina on a downward curve

EDITED BY : BEETHIKA BISWAS 2MINS READ

A00 ingot price has experienced the biggest drop in recent time today when the average price stood at RMB 14,860/t. As updated by Shanghai Metals Market, the primary ingot price registered a drop of RMB 250/t.  The price is expected to range within RMB 14,840 – 14,880 per tonne.

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Aluminium price has been surging throughout 2017. The price rise was so far driven by supply-side reforms in China and environmental restrictions. On the other hand, increase in the price of prime raw materials like alumina and coal was another factor supporting the growth in aluminium price.

As per SMM data, average full production cost of domestic refined aluminium enterprises in November 2017 is RMB 16,033 per tonne, up 4.5 on yearly basis. However, the recent downturn in aluminium price is mostly driven by drop in alumina price and low consumption of the metal in the domestic front.

The drop in aluminium A00 Aluminum prices have continued in all other individual markets in China. A00 ingot prices have registered a drop of RMB 165/t to RMB 250/t across all markets.  The below table shows the price drop in various markets:

SHFE Aluminium wanders around RMB 15,000 per tonnes while support of this point is not strong. It is estimated to move between RMB 14,950-15,150 per tonne today. In the spot market aluminium is trading at a discount of RMB 140-100 /tonne.

Average spot alumina price in China stands at RMB 3534/t on November 21, a further drop from RMB 3558/t on November 20. Domestic spot alumina prices have dropped further to RMB 3515/t today from RMB 3545/t on November 17.  Domestic prices are expected to range within RMB 3450 – 3580 per tonne today. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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