China’s A00 aluminium price gains RMB120/t but fails to offset W-o-W decline; Aluminium fluoride price shrinks by RMB200/t

The latest Shanghai Metal Market (SMM) data reveals a mixed scenario in the aluminium market with today’s prices for A00 aluminium ingot. According to the survey, A00 aluminium ingot price has grown after two consecutive days of downfall to stand at RMB 18,870 per tonne, reflecting an increase of RMB 120 per tonne or 0.64 per cent from the previous trading day. The average prices are estimated to range between RMB 18,850 per tonne to RMB 18,890 per tonne, with spot contract to be traded at a discount price of RMB 70-30 per tonn.

However, a broader analysis over the past month and even weekly trend indicates a continuing downward track in prices. One of the primary reasons for the decline in aluminium prices is the low demand amid increased production.

Additionally, China's domestic low-carbon aluminium price has shot up by RMB 124 per tonne, reaching an average price of RMB 19,765 per tonne. The price of high-purity aluminium (99.99%) has increased by RMB 100 per tonne, standing at RMB 26,100 per tonne. The average prices are estimated to range between RMB 25,700 per tonne and RMB 26,500 per tonne.

Region-wise analysis

Today, the increase in A00 aluminium ingot price has touched upon all the Chinese provinces. For instance, in Foshan and Wuxi, the price has increased by RMB 120 per tonne to RMB 18,810 per tonne and RMB 18,870 per tonne, while that in Hangzhou has climbed up by RMB 100 per tonne to RMB 18,870 per tonne. In Chongqing, A00 aluminium ingot price has increased by RMB 90 per tonne to settle at RMB 18,840 per tonne, followed by the rise of RMB 70 per tonne in Tianjin and Linyi to close at RMB 18,870 per tonne.

Raw material prices:

Aluminium fluoride price has shed off RMB 200 per tonne on August 7 to stand at RMB 9,850 per tonne, with average prices to range between RMB 9,700-10,000 per tonne. China’s domestic aluminium fluoride price has recorded a movement after remaining muted since July 3 at RMB 10,050 per tonne.

In contrast, aluminium powder price has inched up by RMB 0.1 per kg to close the mid-week at RMB 21.6 per kg. The average prices are expected to range between RMB 21.5-21.7 per kg.

The domestic prices of raw materials like bauxite and alumina have remained restrained at RMB 640 per tonne and RMB 3,904 per tonne, respectively.

Aluminium alloy ingot prices:

On August 7, the prices of aluminium alloy (A356) and aluminium alloy (A360) have increased by RMB 100 per tonne, reaching RMB 19,300 per tonne and RMB 19,550 per tonne, respectively. The average prices are expected to range between RMB 19,100-19,500 per tonne for A356 and RMB 19,450 per tonne-19,650 per tonne, respectively.

On a month-on-month basis, aluminium alloy (A356) price has shrunk by RMB 1,850 per tonne from RMB 21,150 per tonne and aluminium alloy (A380) price has contracted by RMB 1,500 per tonne from RMB 1,500 per tonne.

The prices of aluminium alloys (ADC12) and aluminium alloy (A380) have increased by RMB 50 per tonne, settling at RMB 19,550 per tonne and RMB 20,550 per tonne, respectively, with average prices to range between RMB 19,450-19,650 per tonne and RMB 20,450-20,650 per tonne.