Average alumina spot price rallies by RMB7/t, while A00 aluminium ingot price extends drop by RMB50/t

The average alumina spot price in China has further rallied by RMB 7 per tonne to RMB 2,510 per tonne, on Friday, February 21, according to Shanghai Metals Market. This marks the fourth consecutive rise in the alumina spot price. With the continued growth, the price stands higher by RMB 56 per tonne month-on-month.

In the north and central China, the price has gained by RMB 10 per tonne and RMB 5 per tonne to RMB 2,530 per tonne and RMB 2,515 per tonne, but in the east and south the price has remained restrained at RMB 2,510 per tonne and RMB 2,520 per tonne, respectively.

The Australian alumina FOB price shows no change on February 21, after a rise yesterday straight from US$ 285 per tonne to US$ 299 per tonne.

The incessant growth in Chinese alumina price could be attributed to the production suspension at refineries due to the epidemic coronavirus outbreak, resulting in a tight supply of the raw material in the domestic market.

The continuous hike in alumina price, however, has failed to boost the A00 aluminium ingot price for the past four days, as the social inventories of primary aluminium have been gaining over the past few weeks due to low consumptions compared to the arrivals of stocks.

According to SMM data, the A00 aluminium ingot price today, on February 21, has declined by RMB 50 per tonne to RMB 13,540 per tonne. The average prices are expected to range between RMB 13,520 per tonne and RMB 13,560 per tonne, with spot contract to be traded at a discount price of RMB 90 per tonne to RMB 50 per tonne.

Tianjin has seen the highest drop in aluminium price today of RMB 100 per tonne to RMB 13,510 per tonne, followed by Foshan, Wuxi, Hangzhou, and Shenyang, where the prices have plunged by RMB 90 per tonne to RMB 13,550 per tonne, RMB 13,510 per tonne, and 13,535 per tonne, respectively. In Linyi, Gongyi, and Chongqing, the prices have decreased by RMB 80 per tonne and RMB 60 per tonne to respectively come in at RMB 13,600 per tonne, RMB 13,395 per tonne, and RMB 13,570 per tonne.