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31 AUGUST 2017 AL CIRCLE

China downstream aluminium producers go need-based buying after SHFE prices surge

EDITED BY : DIPANWITA GUPTA 2MINS READ

China downstream aluminium producers were found to buy aluminium ingots in a calculative manner after SHFE aluminium prices rose sharply today. On Wednesday, August 30, domestic aluminium processors, extruders and rolled product manufacturers had engaged in bargain hunting after aluminium prices in east China spot market dropped below RMB 16,000 per tonne.


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As on Thursday, August 31, mainstream traded prices of the light metal contracts stood at RMB 16,120-16,140 per tonne in Shanghai, with discounts of RMB 230-220 per tonne over SHFE 1709 aluminium. Traders literally jumped into the spot market to stockpile goods.

China’s official manufacturing PMI rose to 51.7 in August, higher than 51.4 in July and 51.3 projected. With other macroeconomic factors remaining steady, the demand from key end user industries is expected to remain buoyant in the medium term driving production up across China downstream aluminium sector.

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Aluminium semi-finished products sale by China in the international market continued to grow in July this year. As per General Customs data, China’s total aluminium semi-finished products export surged to 390,000 tonnes in July and 2.52 million tonnes during January-July 2017 (+6.6% YoY).

Aluminium bar, rod, and profile exports totalled 78,970 tonnes (-24.5% YoY), aluminium wire exports rose to 2,165 tonnes (+4.3% YoY), aluminium plate, sheet and strip exports were up by 38% YoY at 194,730 tonnes, aluminium foil exports totalled 99,408 tonnes (+8.8% YoY), and aluminium tube exports surged to 11,764 tonnes (+10.2% YoY) in July 2017. 

Tagged with:

China Aluminium Price

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EDITED BY : DIPANWITA GUPTA 2MINS READ

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