China sees a “never-before” price drop in A00 aluminium ingot post CNY holiday; Input costs remain unchanged

Post the Chinese New Year holiday from January 24 to February 2, 2020, the Chinese market has seen a “never-before” sharp drop in A00 aluminium ingot price of RMB 500 per tonne to stand at RMB 13,600 per tonne on February 3, found Shanghai Metals Market. This brings the price as low as was found in February 2019. The average prices today are expected to range between RMB 13,580 per tonne and RMB 13,620 per tonne, with spot contract to be traded at a discount price of RMB 120 per tonne to RMB 80 per tonne.

This sharp decline could be attributed to the current suspension of downstream operations due to Coronavirus, resulting in poor demand and transaction of aluminium ingots.

Shenyang in China has seen the highest drop in the ingot price of RMB 550 per tonne to RMB 13,600 per tonne, followed by Chongqing and Gongyi where the price has plunged by RMB 525 per tonne to come in at RMB 13,635 per tonne and RMB 13,520 per tonne, respectively, as of February 3, learned SMM. In Tianjin, the price is also at RMB 13,600 per tonne recording a decline of RMB 520 per tonne and that in Linyi, Foshan, and Wuxi at RMB 13,640 per tonne, RMB 13,680 per tonne, and RMB 13,595 per tonne after the price drop of RMB 510 per tonne and RMB 505 per tonne, respectively.

The price of aluminium alloy (A356) has also slid by RMB 500 per tonne to RMB 14,300 per tonne after the opening of the Chinese market post CNY holiday on February 3.

The input costs, on the other hand, have shown no change. While the average alumina spot price is still hovering at RMB 2,454 per tonne, the prices of prebaked anode, aluminium fluoride, and bauxite are at RMB 2,780 per tonne, RMB 8,100 per tonne, and RMB 560 per tonne, respectively.