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29 JANUARY 2018 AL CIRCLE

China aluminium market remains passive; SMM projects an oversupplied prebaked anode market in 2018

EDITED BY : BEETHIKA BISWAS 2MINS READ

After showing an upward movement last week due to restocking ahead of the Chinese New Year holiday in mid-February, average aluminium A00 ingot prices in China has closed the week on a lower level at RMB 14450 per tonne. This week has started with a moderate gain and the average A00 ingot prices today stand at RMB 14,485 per tonne. The prices are expected to move within a range of RMB 14,480-14,490. Spot discount will range within RMB 150-110 per tonne today.  Among the domestic markets, A00 price in South China market remains the highest at RMB 14,535 per tonne. 

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Average prices of aluminium alloys have registered no change in any of the markets today despite the fluctuation in A00 ingot price. The market remains passive and there are fewer activities at the end of the month. SHFE aluminium contract is set to stay range-bound at RMB 14,550-14,750 per tonne today.

As for major raw materials are concerned, average spot alumina prices have registered no change and stand at RMB 2897 per tonne today. Bauxite prices remain unchanged today. Imported Bauxite price CIF China has gained a little to stand at USD 47.7 per tonne.

Prebaked anode prices too remain unchanged today. SMM expects the fundamentals of the prebaked anode market to change in 2018, as it may turn to oversupply following a year of surging prices. The shift is being visible in January with a drop in prices and, extension of payment cycle and commissioning of new capacity.

Prebaked anode prices in east China were down RMB 150 per tonne this month from levels seen in December, according to SMM data. Prices in February are also set to drop by over RMB 100 per tonne as supply of calcined coke became less tight.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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