China’s A00 aluminium ingot price demonstrates W-o-W rise of 1.15% backed by central bank monetary policy

China’s central bank supportive monetary measure aimed at stabilising economy amid bearish demand for primary aluminium from downstream sectors has boosted China’s A00 aluminium ingot price for the second consecutive day, bringing it to RMB 20,290 per tonne on July 3, 2024. According to the Shanghai Metals Market (SMM) survey, the price has escalated by RMB 80 per tonne overnight, following an increase of RMB 100 per tonne on the previous day. The latest increase has further brought the price 1.15 per cent higher than RMB 20,060 per tonne a week ago.

According to SMM, the average prices today are estimated to range between RMB 20,270 per tonne and RMB 20,310 per tonne, with spot contract to be traded at a discount price of RMB 80-40 per tonne.

Prices across regions

Among the major consumption areas, Linyi has witnessed the highest aluminium price growth of RMB 100 per tonne on July 3 to RMB 20,310 per tonne. In Gongyi, Wuxi, and Hangzhou, A00 aluminium ingot price has climbed up by RMB 90 per tonne to reach RMB 20,200 per tonne, RMB 20,300 per tonne, and RMB 20,310 per tonne, respectively.

In Shenyang and Tiajin, A00 aluminium ingot price has gained RMB 80 per tonne to stand RMB 20,240 per tonne and RMB 20,310 per tonne, while the price in Foshan and Chongqing has added RMB 60 per tonne and RMB 50 per tonne to settle at RMB 20,100 per tonne and RMB 20,210 per tonne.

China’s domestic low-carbon aluminium price has increased by RMB 67 per tonne to close at RMB 21,050 per tonne on July 3. High-purity aluminium price has hiked by RMB 100 per tonne to stand at RMB 27,700 per tonne, with average prices ranging between RMB 27,300 per tonne and RMB 28,100 per tonne.

Aluminium alloy prices  

In tandem with A00 aluminium ingot price hike, aluminium alloy (A356) price has gained RMB 100 per tonne to peg at RMB 20,750 per tonne on July 3. The average prices are estimated to range between RMB 20,600 per tonne and RMB 20,900 per tonne.

According to SMM, aluminium alloy (A360) price has also expanded by RMB 100 per tonne to come in at RMB 21,100 per tonne, with average prices likely to hover around RMB 21,000-21,200 per tonne.

However, aluminium alloys (ADC12) price and aluminium alloy (A380) price have remained muted at RMB 19,950 per tonne and RMB 20,950 per tonne, found SMM.

Aluminium raw material prices

Among primary aluminium input costs, aluminium powder price has inched up by RMB 0.10 per kg to close at RMB 23 per kg on July 3. The average prices are estimated to range between RMB 22.9-23.1 per kg.  

In contrast, the domestic bauxite and alumina prices have remained restrained at RMB 640 per tonne and RMB 3,903 per tonne, respectively. The average alumina price is continuing at RMB 3,903 per tonne since June 19, indicating a steady price trend. Increasing primary aluminium production has been putting pressure on the domestic alumina price, bringing it to its peak of RMB 3,908 per tonne on May 28.