
China’s refined aluminium inventory witnessed a further drop on Thursday March 29, 2018, as was expected by the analysts that refined aluminium inventory in China would start reducing between March and April this year after a rise in downstream consumption in the domestic market. According to the Shanghai Metal Market data, China’s aluminium inventory including SHFE warrants dropped to 2.24 million tonnes, down from 2.26 million tonnes on Monday March 26 and 2.28 million tonnes on Thursday March 22.

According to SMM, since trading became active in the physical market in east China but relatively less in the Guangdong market on Wednesday March 28, transactions in Shanghai, Wuxi and Hangzhou started hovering at RMB 13,650 to 13,670 per tonne with spot discounts of RMB 70 to 60 per tonne against the SHFE 1803 contract and transactions in Guangdon floated at RMB 13,700 to 13,730 per tonne. Hence, the price gap between transactions in Shanghai and Guangdong increased to about RMB 90 per tonne.

Average A00 Aluminium Ingot prices also saw a sharp rise from RMB 13660 per tonne to RMB 13740 per tonne, as on today. The prices are expected to range between RMB 13720 and RMB 13760 per tonne with spot discounts to settle at RMB 120 to RMB 80 per tonne. Primary ingot prices even registered a hike of RMB 50 to 100 across all domestic markets.
Along with primary ingots, Bauxite (6.0≤Al/Si<7.0) prices at Shanxi and Bauxite (6.0≤Al/Si<7.0) prices at Henan also witnessed a gain today to RMB 420 and RMB 430 per tonne respectively. Bauxite(6.5≤Al/Si<7.5) prices at Guangxi even rose to RMB 340 per tonne.
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