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20 SEPTEMBER 2017 AL CIRCLE

Advance aluminium capacity cut in Henan buoys aluminium prices in China, alumina continues upward track

EDITED BY : BEETHIKA BISWAS 2MINS READ

Two aluminium and alumina producers in Henan have started winter capacity cuts in advance, from Sept 19. As reported by SMM, Jiaozuo Wanfang Aluminum will cut aluminum capacity by over 30% based on the number of electrolytic cells, while Chalco Zhongzhou Aluminum will cut alumina capacity by over 30% based on the number of production lines. They will continue the process until Mar15, 2018. 

This has buoyed aluminium and aluminium alloy prices in China across all markets. SHFE 1711 aluminium gained as much as 3.88% as of 2:34 pm after news of two producers in Henan cutting capacity ahead of schedule started floating in the market. 

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The rise in aluminium alloy prices is presented in the table below:

A00 Aluminium Ingot prices in China have registered a rise for two days consecutively after a fall.  The average price of A00 Aluminium Ingot would range between RMB16,330 – 16,370/t and today’s average price stands at RMB 16,350/t, up from RMB 16,280/t yesterday. We can see the quick price fluctuation of A00 ingot prices in last one month in the below graph.

 

A00 Aluminium Ingot in spot China market is trading at discounts of RMB 210 - 170/t. Average prices for A00 ingot in the major Chinese markets (East, North, South, Southwest and Northeast China) have registered a rise within a range of RMB 40 - 90/t.

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Among the domestic markets, the average price for A00 Aluminium Ingot for South China market remains the highest today.

As for alumina prices are concerned, On September 20, the average price stands at RMB 3443/tonne, up from RMB 3353/tonne yesterday. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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