
Aluminium and its raw materials are on a downward curve in China following winter capacity cut drive. Consumption is low and downstream purchasing is slow on expectation of lower supply. A00 ingot price is experienced the biggest drop in recent time in November. The average price of A00 Aluminium ingot stood at RMB 14,760/t today dropping further from RMB 14,860/t yesterday. The price is expected to range within RMB 14,740 – 14,780 per tonne.

In the SHFE downward tendency of aluminium price is expected to be in control in the short term. Main contracts of SHFE Aluminium will aim RMB 14,500 per tonne for next stage. The contract is expected to move between RMB14,750-14,950 per tonne. . In the spot market aluminium is trading at a discount of RMB 120-80 /tonne.
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 80/t to RMB 110/t across all markets. The below table shows the price drop in various markets:

In the raw material scenario, alumina and bauxite have reported a downward trend. Average spot alumina price in China stands at RMB 3515/t on November 22, a further drop from RMB 3534/t on November 21. Domestic spot alumina prices have dropped further to RMB 3500/t today from RMB 3515/t on November 17. Domestic prices are expected to range within RMB 3440 – 3560 per tonne today.
Bauxite prices have registered a drop of RMB 10 per tonne in Henan and Shanxi provinces. Prebaked anode prices remain unchanged across all markets.
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