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02 NOVEMBER 2018 AL CIRCLE

Aluminium alloy price records no rise despite lowered billet inventories in China: SMM

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the data by Shanghai Metals Market, 6063 aluminium billet inventories across five major consumption areas in China extended a week-on-week decline by some 2,400 tonnes over the weekend ended on Thursday, November 1, to stand at 141,100 tonnes. The reason for this plunge could be enthusiastic transactions among downstream purchasers.

In Foshan, Guangdong and Wuxi, Jiangsu, the inventories dropped by some 3,300 tonnes and 1,600 tonnes to stand at 72,900 tonnes and 21,200 tonnes, respectively. Inventories in Nanchang, Jiangxi, on the other hand, surged by around 4,400 tonnes and stood at 17,300 tonnes. For more details, refer to the chart below:

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Aluminium alloys (ADC12) price also dropped yesterday, on November 1, from RMB 15,450 per tonne to RMB 15,400 per tonne. But today, on November 2, it showed no change further. The average prices are expected to range between RMB 15,300 per tonne and RMB 15,500 per tonne, SMM found.

The prices of Aluminium alloy (A356) and aluminium alloy (A380) also showed restraint today, after a plunge from RMB 14,700 per tonne to RMB 14,500 per tonne and from RMB 14,200 per tonne to RMB 16,150 per tonne, respectively, as on Thursday, November 1.

This plunge in aluminium alloy prices despite lowered billet inventories could be because of the incessant fall in primary aluminium price. Throughout this week since October 30, the A00 aluminium ingot price extended its fall from RMB 14,030 per tonne to RMB 13,800 per tonne, as of November 1. Today, the price showed no further changes, however. The average prices are expected to range between RMB 13780 per tonne and RMB 13820 per tonne, with spot discounts to settle at RMB 70 per tonne to RMB 30 per tonne.

The primary aluminium price in the south and north market also showed restraint today at RMB 13,900 per tonne and RMB 13,820 per tonne, respectively, but the market in the east showed a little exception by recording a price drop by RMB 5 per tonne to RMB 13,795 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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