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23 OCTOBER 2017 AL CIRCLE

Capacity reduction plan continues supporting aluminium price in China, raw material prices remain unchanged

EDITED BY : BEETHIKA BISWAS 2MINS READ

With the introduction of reduction plan during heating season of Henan, Shandong and Shanxi Provinces, the affected annual capacity of electrolytic aluminium is expected to exceed 2.6 million tonnes.

Since restarting of old capacity and newly-increased capacity are on the line, so production limit under high inventories will not cause short supply. The resistance of rise of Aluminium price in the long term has increased after mindset change. In the short term, with recovered consumption and production limit of electrolytic aluminium ahead of schedule, inventories will drop, which will continue supporting aluminium price. The amount of rise will depend on impetus of capital.

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Prices of A00 aluminium ingot have registered a slight rise from RMB 16,100/t to stand at RMB 16,130/t today.  A00 aluminium ingot prices across all individual markets have also increased consequently. Today’s aluminium A00 Aluminum prices across the various markets in China are presented in the table below:

Keeping up with A00 aluminium ingot, SHFE 1712 aluminium, according to SMM has registered a rise to0 and is expected to range within a range of RMB 16,000-16,250/t In east China’s spot aluminium market, spot discounts are expected at RMB 140-100/t. 

As for raw materials are concerned, SMM statistics shows that average spot alumina price in China remains unchanged at RMB 3708/t on October 23.  Spot alumina prices remain almost flat in all other individual markets in China. Chalco and imported alumina prices have also remained unchanged. After growing at a faster rate alumina prices are reaching a plateau in mid-October.  

Prebaked anode and bauxite prices also remain unchanged in all major China markets.
 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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