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31 OCTOBER 2017 AL CIRCLE

China aluminium stock up on sluggish demand, SHFE aluminium to move in a lower range

EDITED BY : BEETHIKA BISWAS 2MINS READ

SMM statistics showed Aluminum stocks in China’s seven major markets rose again as a result of poor downstream consumption after last week’s big fall. Compared to October 27, on October 30, the inventories in China’s major market have seen a rise:

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As updated by Shanghai Metals Market, average Prices of A00 aluminium ingot have dropped  across all markets for three consecutive days. The price drop is mostly attributed to slow downstream demand. Average A00 aluminium ingot price has dropped from RMB 16,120/t to stand at RMB 16,080/t today on October 31.  Other than north China market, aluminium A00 Aluminum prices have dropped from RMB 5/t to RMB 40/t across all markets.   In the spot market aluminium is trading at a discount of RMB130-90 /tonne.

Base metals are split on Monday’s night trading at SHFE, and prices are expected to keep swinging throughout the day. In China, on Tuesday, the most active SHFE aluminium 1711 opened at RMB 16,200/t and SHFE aluminium is expected to move within a range of RMB 16,250-16,400/tonne today.

Aluminium alloy prices remain unchanged in all markets despite the fall in primary ingot prices. According to the latest SMM survey Chinese aluminium extrusion producers reported lower orders in November compared with October, especially in areas, such as Shandong, Hebei and Jiangxi. The downturn was primarily driven by sluggish property market and halt of construction in Beijing, Tianjin and Hebei.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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