China’s A00 aluminium ingot price holds steady at RMB 19,740/t, amid recent alumina price hike by RMB 9/t

According to the Shanghai Metal Market, after several days of no movement, alumina prices have finally surged by RMB 9 per tonne, reaching RMB 3,916 per tonne. In key regions like Henan, Shanxi, Guizhou, and Guangxi, the increase is even higher, with prices up by RMB 10 per tonne. This rise follows a significant period of price stability and has implications for the overall aluminium market.

Meanwhile, as of 27th August, the aluminium ingot price on the Shanghai Metal Market (SMM) remains unchanged for the second time this month. This marks a notable pause after eight consecutive days of price increases. The current average price is RMB 19,740 per tonne, within a range of RMB 19,720 to RMB 19,760 per tonne. The spot contract is expected to trade at a discount of RMB 120 to RMB 80 per tonne, averaging RMB 100 per tonne.

The average price of low-carbon aluminium has also risen slightly by RMB 8 per tonne to RMB 20,590 per tonne, while prices for high-purity aluminium (99.99% and 99.996%) remain unchanged at RMB 26,800 and RMB 27,800 per tonne, respectively, for the past two days.

Regional Analysis:

The A00 aluminium ingot prices remain consistent across various Chinese provinces. Gongyi and Shenyang maintain a price of RMB 19,640 per tonne, Foshan at RMB 19,650 per tonne, Wuxi at RMB 19,730 per tonne, Hangzhou at RMB 19,740 per tonne, Chongqing at RMB 19,710 per tonne, and both Tianjin and Linyi at RMB 19,660 per tonne.

Other prices:

 The price of domestic bauxite remains unchanged at RMB 640 per tonne. Despite the unchanged prices in the aluminium ingot market, the recent alumina price increase after a long period of stability may indicate shifting dynamics in the market, potentially impacting future pricing trends for aluminium products.

Aluminium alloy ingot:

There are no changes in the price of aluminium alloy ingot (A356), (A360), (A380) and alloys ingot (ADC12). It remains the same from the previous day, where it averaged RMB 20,250 per tonne for (ADC12), RMB 20,200 per tonne for (A356), RMB 20,450 per tonne for (A360) and RMB 21,300 per tonne for (A380).

Market analysis:

The absence of price movement in the SMM aluminium ingot today is a balancing event. After more than one week of increase in price, this could signify a temporary equilibrium in the market.