
Sluggish trading ahead of the Chinese New Year holiday next week is keeping the Chinese market inactive. There is no such significant movement in the prices of commodities and the raw materials other than the primary ingots that is continuously falling with occasional signs of upward movements.

After the fall on last week’s closing, as seen by Shanghai Metals Market, average aluminium Ingot prices dropped further to RMB 100 per tonne today to stand at RMB 13,870 per tonne. The prices are expected to move within a range of RMB 13,850-13,890. Spot discount will range within RMB 220-180 per tonne today. Average A00 ingot prices saw the biggest drop in South China market at RMB 165 per tonne.
Post holidays, however, prices would still fall as aluminium supply would ramp up, even if at a slower pace once the envronmental restrictions and capcity cut policy duration are over.
On the cost front, average spot alumina prices in China dropped slightly to RMB 2886 per tonne. Spot prices in the central China marked dropped RMB 20 per tonne to RMB 2880 per tonne. Chalco alumina and imported alumina prices registered no change today. Bauxite and prebaked anode prices registered no change but expected to go down in the short term due to lower electricity prices.
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