
The Chinese market is lying low due to the absence of any strong fundamentals. Average A00 ingot prices have registered a slight drop today to stand at RMB 14,070 per tonne. The prices are expected to move within a range of RMB 14,050-14,090. Spot discount will range within RMB 130-90 per tonne today.

As reported by Shanghai Metals Market, China’s aluminium output was down 1.7% YoY in January to 2.99 million tonnes. The volume also dropped by 16,000 tonnes from December 2017. In 2017, China churned out 35.15 million tonnes of aluminium, up 7.6% from 32.64 million tonnes (IAI data) in 2016.
The lower production was attributed to the operation shutdown at Aluminium Corp of China (Chalco) in Guizhou province due to power supply disruption. The company has also done a capacity swap with Guizhou Huaren Aluminium. Production was negatively affected by falling aluminium prices.
Lower aluminium prices in China have slowed production rate in newly added capacities in Guangxi, Guizhou, and Inner Mongolia provinces in January. Lower prices also discouraged restarting of operations at Chongqing Tiantai and Guangxi Xinfa aluminium.
As for major raw materials are concerned, Spot Alumina prices, Bauxite and Prebaked anode prices remain unchanged today.
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