China's A00 Aluminium ingot price marks M-O-M decline of RMB 1090/t amid steady raw material costs

According to the Shanghai Metal Market (SMM) survey, China's A00 aluminium ingot price has experienced a slight decrease of RMB 40 per tonne on Wednesday, August 14, following a restraint on the previous day, settling at RMB 18,950 per tonne.  This has resulted in a sharp month-on-month fall of RMB 1,090 per tonne from RMB 20,040 per tonne. The average prices are expected to range between RMB 18,930-18,970 per tonne, with a spot contract to be traded at a discount price of RMB 30 per tonne and a premium price of RMB 10 per tonne.

SMM predicts the domestic price of A00 aluminium ingot will stay sluggish due to a surge in production. Additionally, tariffs on China's aluminium are reducing global consumption, preventing any significant price increases.

Region-wise analysis

The price of A00 aluminium ingot has decreased across all provinces in China, with the most significant drops occurring in Foshan and Linyi, where prices have dwindled by RMB 60 per tonne to RMB 18,880 per tonne and RMB 18,950 per tonne, respectively. In Gongyi, Wuxi, Hangzhou, Shenyang, and Tianjin, aluminium ingot price has declined by RMB 40 per tonne, settling at RMB 18,870 per tonne in Gongyi, RMB 18,950 per tonne in Wuxi, Hangzhou, and Shenyang, and RMB 18,970 per tonne in Tianjin. In Chongqing, the price has decreased by RMB 30 per tonne to RMB 18,930 per tonne.

The price of domestic low-carbon aluminium price has also seen a downfall of RMB 68 per tonne to clock at RMB 19,827 per tonne as of August 14, marking a month-on-month decline of RMB 961 per tonne from RMB 20,788 per tonne.

Raw material prices

The prices of raw materials like bauxite and alumina have remained restrained across China despite fluctuations in global markets. Only the Australian alumina FOB price has moved up by US$ 8 per tonne, clocking at US$ 503 per tonne and standing 4.57 per cent higher than US$480 per tonne.

Coming to bauxite prices, they have remained firm at RMB 640 per tonne and RMB 550 per tonne in Shanxi and Henan for more than one month. This stability is due to consistent raw material consumption for increased primary aluminium production, coupled with stable supply owing to refineries resuming to operation from maintenance.

Aluminium alloy prices

The prices of aluminium alloy (A356) and alloy (A360) have decreased by RMB 50 per tonne to settle at RMB 19,400 per tonne and RMB 19,650 per tonne, respectively, with average prices ranging between RMB 19,200-19,600 per tonne and RMB 19,550-19,750 per tonne.

In contrast, the prices of aluminium alloys (ADC12) and aluminium alloy (A380) have remained unchanged at RMB 19,750 per tonne and RMB 20,750 per tonne, respectively.