China’s A00 aluminium ingot price gains RMB70/t, representing a positive market sentiment by month-end

According to the Shanghai Metal Market (SMM), the price of A00 aluminium ingot has witnessed a modest increase after three consecutive dips. China’s A00 aluminium ingot price on July 31st, 2024, registered at RMB 18,970 per tonne, surged by RMB 70 per tonne from the previous trading day, indicating a positive market sentiment. The month started with a price of RMB 20,110 per tonne, which plummeted by RMB 1,140 per tonne by the end of the month.

The average price of A00 aluminium ingot is expected to hover between RMB 18,950 per tonne and RMB 18,990 per tonne, with the spot contract price expected to be traded at a discount price of RMB 70 to RMB 30 per tonne.

The price of low-carbon aluminium has increased by RMB 66 per tonne, reaching an average of RMB 19,799 per tonne.

Region-wise price analysis:

The domestic price of aluminium ingot in China has also seen an upward trend across all the regions, with the highest rise in Wuxi, of around RMB 80 per tonne, standing at RMB 18,970 per tonne. The price has escalated by RMB 70 per tonne in Gongyi, Foshan, Hangzhou, Chongqing and Linyi regions to peg at RMB 18,840 per tonne, RMB 18,850 per tonne, RMB 18,970 per tonne, RMB 18,940 per tonne and RMB 19,000 per tonne respectively. Regions like Shenyang and Tianjin experienced an increase in price today by RMB 30 per tonne and RMB 20 per tonne, standing at RMB 18,960 per tonne and RMB 19,000 per tonne.

The price of high-purity aluminium (99.99%) and high-purity aluminium (99.996%) is also up by RMB 50 per tonne to dock at RMB 26,250 per tonne and RMB 27,250 per tonne.

Raw material prices:

At the end of the month, the price of imported bauxite remained the same for over two and a half weeks. However, the alumina price has slightly dipped by RMB 1 per tonne to stand at RMB 3,904 per tonne. Except for Shanxi province, where the price has been curtailed by RMB 5 per tonne to settle at RMB 3,910 per tonne, the price of alumina remained the same in all other provinces.

Aluminium alloy ingot price changes:

Aluminium alloys (ADC12) price in all regions remains unchanged. Aluminium alloy (A356) price and alloy (A360) price have boosted by RMB 100 per tonne and RMB 50 per tonne to clock at RMB 19450 per tonne and RMB 19750 per tonne. The average price for (A356) is expected to stand between RMB 19,300 per tonne and RMB 19,600 per tonne. For (A360), the average price is likely to hover between RMB 19,650 per tonne and RMB 19,850 per tonne.

Market analysis:

The aluminium market in China has shown potency despite some downward pressure on prices. The slight increase towards the end of the month suggests that market participants are optimistic about future demand.