China’s A00 aluminium ingot price falls below RMB19000/t as an impact of inventory pressure

According to the Shanghai Metals Market, A00 aluminium ingot price has marked a decline for the third day in a row by RMB 280 per tonne to stand below RMB 19,000 per tonne as of Monday, November 13. Data shows the price has come in at RMB 18,850 per tonne, with average prices likely to range between RMB 18,830 per tonne and RMB 18,870 per tonne. The spot contract is expected to be traded at a discount price of RMB 70-30 per tonne.

The inventory pressure is expected to cause spot discounts in East and Central China to persist. Only in South China, production curtailment in Yunnan may possibly shift spot discounts in South China into premiums in the future.

Foshan, Wuxi, and Tianjan have also seen a plunge of RMB 280 per tonne in A00 aluminium ingot price at the beginning of the week to RMB 18,930 per tonne, RMB 18,850 per tonne, and RMB 19,900 per tonne, respectively. In Chongqing and Linyi, A00 aluminium ingot price has shrunk by RMB 260 per tonne to RMB 18,910 per tonne and RMB 18,870 per tonne, while the price in Shenyang has contracted by RMB 230 per tonne to RMB 18,900 per tonne.

China’s domestic low carbon aluminium price has dwindled by RMB 297 per tonne to stand at RMB 19,670 per tonne on November 13, found the Shanghai Metals Market data.

Aluminium alloy (A356) price has registered a sharp downfall of RMB 300 per tonne, marking a fall for the second day in a row, to stand at RMB 19,500 per tonne. The average prices are estimated to hover around RMB 19,300-19,700 per tonne.

Aluminium alloys (ADC12) price and aluminium alloy (A380) price have suffered a loss of RMB 200 per tonne to peg at RMB 19,400 per tonne and RMB 20,400 per tonne, respectively.

Among primary aluminium input costs, the domestic average alumina spot price has remained restrained on Monday, November 13, following the two back-to-back declines by RMB 2 per tonne on each day. In November 9, the price stood at RMB 3,008 per tonne versus RMB 3,010 per tonne on the previous day, and on November 10, it stood at RMB 3,006 per tonne.

The alumina spot price is on the downtrend due to disrupted production because of environmental protection and maintenance issues and as an impact of bauxite supply stability. Despite recovering profit margins, refineries are struggling to achieve high, stable production. In addition, aluminium production cuts in Yunnan are weighing on alumina demand, resulting in muted price.