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12 MARCH 2018 AL CIRCLE

China aluminium struggles under climbing inventory and low demand; A00 ingot drops across the market

EDITED BY : BEETHIKA BISWAS 2MINS READ

As updated by Shanghai Metals Market, spot aluminium fell to RMB 13,800 per tonne on Monday March 12. SMM updates today’s average A00 ingot price stands at RMB 13,810 per tonne and is expected to trade in a range of RMB 13790 – 13830 per tonne today with a discount of RMB 100-80 per tonne. Primary ingot prices registered a drop of RMB 120 to 170 per tonne across all domestic markets. 

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Trading was active in the east China physical market but thin in the Guangdong market, SMM learned. In Shanghai and Wuxi, SHFE 1803 contracts were traded at RMB 13,800-13,820 per tonne with spot discounts of RMB 100-90 per tonne. Trades in Hangzhou were seen at RMB 13,810-13,830 while those in Guangdong were seen at RMB 13,850-13,860 per tonne. The difference in prices between Shanghai and Guangdong hovered around RMB 40 per tonne.

In an update from SMM, China's social inventory of refined aluminium including SHFE warrants stood at 2.26 million tonnes as on Monday March 12, according to data. This is up from 2.21 million tonnes recorded on Thursday March 8. The current inventory status in the major Chinese cities is as follows:  

Low downstream demand in the Guangdong market has made the sellers reluctant and discouraged trading, while downstream consumers held back from buying due to cash flow issues.

Tagged with:

China Inventory Price SMM

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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