
According to an SMM report, Aluminium prices in China are relatively stable despite the growing aluminium supply. SMM also tries to find out the positive factors that are giving support to the aluminium prices which ideally should have gone down with the inflating supply.
SME price trend in August
Aluminium consumption in July and August 2016, which is traditionally off-season for the China market, is better than the same period of 2015. Though the consumption is down from previous months a YOY increase has offered support to the aluminium prices.
SMM survey also found that orders for downstream producers started growing in mid or late August expecting the peak demand season in September. The negative impact of growing supply will be further offset in the month of September with the onset of peak-demand season, SMM indicates.
Due to supply release from the new and restarted capacity Aluminium stocks in China’s five major markets have been on a rising trend over the past three weeks. The total output is still well within the lower limit, SMM observes.
In the meantime China Aluminium International Trading Co. (Chalco Trading) hiked its aluminium prices in major markets on September 2 after sharp cuts on the previous day.
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