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25 OCTOBER 2017 AL CIRCLE

A00 ingot prices up in China, SHFE Aluminium looks for direction to rise beyond moving average

EDITED BY : BEETHIKA BISWAS 2MINS READ

With the introduction of reduction plan for alumina and aluminium during heating season and tightness in coal market because of supply-side reforms, China’s aluminium price is getting strong support in the market. SMM is of the view that in the short term, with recovered consumption and production limit of aluminium ahead of schedule, inventories will drop, which will continue supporting aluminium price. The amount of rise will depend on impetus of capital. A00 ingot price is steadily moving on an upward curve on expectation of supply shortage. 

Average Prices of A00 aluminium ingot have registered a slight rise from RMB 16,150/t to stand at RMB 16,210/t today October 25.  A00 aluminium ingot prices across all individual markets have also increased consequently. Today’s aluminium A00 Aluminum prices across the various markets in China are presented in the table below: 

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As observed by SMM, SHFE Base Metals mostly continue yesterday’s tendency of rebound. All base metals opened high and are keeping volatile through the afternoon. According to SMM it would be hard for SHFE Aluminium to get rid of the twining range of moving averages. SHFE aluminium would need direction to move beyond the moving average and a continuous focus on inventories change can change the movement.

Aluminum Alloy (ADC12)  prices also remain unchanged across all markets.

As for raw materials are concerned, SMM statistics shows that average spot alumina price in China remains unchanged at RMB 3730/t on October 23.  Spot alumina prices remain almost flat in all other individual markets in China. Chalco and imported alumina prices have also remained unchanged. Prebaked anode and bauxite prices also remain unchanged in all major China markets.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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