The China market is buzzing with the expectations that primary aluminium prices would stabilize or may increase supported by alumina prices. Meanwhile, anticipation of a growth in aluminium inventory grows amid low seasonal demand and slow pace in re-commissioning of capacity. Shanghai Metals Market expects aluminium prices to remain rangebound in the short term.
Average spot price of A00 aluminium ingot in China stands at RMB 13,830 per tonne today, down from RMB 14010 per tonne yesterday. Alumina price stands at RMB 2839 (US$426) per tonne. Australian Alumina FOB price stands at USD 468 per tonne.
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In another update from SMM, Yingkou Xintai Aluminum has secured permit to commission 322,500 tpy of new primary aluminium capacity in Liaoning province in north China. In the north China market aluminium ingot prices are averaging at RMB 14,150 per tonne in the current month. The commissioning was done through a capacity swap between the company and Henan Yugang Longquan Aluminium. This was confirmed by the Liaoning Provincial Industry and Information Commission in the beginning of July.
Yingkou Xintai started ramp-up of 460,000 tpy of aluminium capacity in June 2012 and planned to commission the latest allowance this month. The plant is located in Yingkou Coastal Industries Base and the old capacity in Henan province has been demolished.
SMM expects aluminium prices to remain rangebound at lows in the short term as there is no strong market fundemental to give direction.
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