China aluminium ingot prices lose steam toward July end, output increases YoY

<p>Aluminium ingot prices in China major markets rose consistently at a moderate pace in July this year but slowed down towards the month end, revealed National Bureau of Statistics (NBS) data. The prices of aluminium ingots in late July were RMB 14,244.60 per tonne, up RMB 120.8 per tonne (0.9 per cent) from mid-July.</p> <p>The average price trend for A00 aluminium ingot (as on July 31) across five major regions in China is depicted in the below graph:</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/SMMingotpricesAug9.png" alt="News" width="517" height="232" /></p> <p>China Aluminum International Trading Co. (Chalco Trading) has been rising aluminium prices it offered across major markets for the last three consecutive days. The prices it offered are already hovering near RMB 15,000 per tonne, buoyed up by capacity cut news. &nbsp;Shanghai Metals Market understands that Chalco aluminium prices would potentially break above RMB 16,000 per tonne in the short term.</p> <p>The revised aluminium prices as on August 9 are as follows:</p> <p>Unit: RMB per tonne</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/ChalcoSMMAug9.png" alt="News" width="430" height="199" /></p> <p>Exclusive SMM base metal output data shows aluminium output rose to 3120 tonnes in July, up 16.5 per cent year-on-year. During the first six months of the current calendar year, output has dropped by 21 per cent to 21416 tonnes.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Report1banner.gif" alt="News" width="480" height="82" /></p> <p>In August this year, China&rsquo;s aluminium output is expected to drop to 3075 tonnes since the production cuts will outpace the commissioning of new aluminium capacity. SMM observes.</p> <p>Aluminium production cuts in China major manufacturing hubs are still under way in August, but the cuts have slowed down compared with July due to high global as well as domestic aluminium prices.</p>