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01 JANUARY 2018 AL CIRCLE

Aluminium ingot prices stay up in the end of the year; ex-China deficit will boost export

EDITED BY : BEETHIKA BISWAS 2MINS READ

However, primary ingot prices are trending high at the end of the year despite higher inventory in China. Trading is closed today due to the New Year Holiday. Average A00 ingot price stands at RMB 14,700 per tonne today and expected to move within a range of RMB 14,680-14,720 per tonne. Spot discount is set to widen further to RMB 400-360/t. Aluminium ingot price in the South China market is trending the highest at RMB 14,880/t.

The last updated A00 ingot prices in the major Chinese markets can be seen in the following table:

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Spot Alumina price has seen some substantial increase in 2017. This has been one of the reasons behind the growth of primary ingot prices in the country.  Alumina price trend in China in 2017 can be seen in the following table.

Increasing deficit in ex China world in 2018, an even lower SHFE-LME ratio is likely to boost China’s exports of aluminium products. The conclusion of US anti-dumping case against Chinese common alloy sheet early next year may cut down export of alloy sheet. However, there will be many other products which will boost aluminium export from China.

SMM expects more covert aluminium exports due to low SHFE-LME ratio and high profits. Most of them are aluminium cast coils of 99.6-99.7% Al packed in pure aluminium rods and they were used as an alternative to aluminium ingots. Henan, Inner Mongolia, Gansu provinces are the major producing regions. SMM expects China’s exports of unwrought aluminium and aluminium products in December to rise by at least 30,000 tonnes from November, and that it may increase further in January. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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