China’s alumina price stands RMB11/t higher W-o-W on capacity resumption; A00 aluminium ingot price shrinks by RMB160/t

The average alumina spot price has grown by RMB 2 per tonne over the weekend after an intermittent restraint at RMB 2,831 per tonne on Friday, July 14, according to the Shanghai Metals Market data. On Monday, July 17, the price has stopped at RMB 2,833 per tonne, up by RMB 11 per tonne from RMB 2,822 per tonne a week ago. Last week from July 10 to 14, the alumina spot price gained RMB 9 per tonne. 

In Shandong, Guizhou, and Guangxi, the alumina spot price has climbed RMB 5 per tonne to stand at RMB 2,795 per tonne, RMB 2,820 per tonne, and RMB 2,830 per tonne, respectively. Other provinces like Henan, Shanxi, and Bayuquan have witnessed no changes in alumina prices.

On the other hand, the Australian alumina FOB price has dipped by US$ 1 per tonne to clock at US$326 per tonne, found SMM. The reason for the rise in domestic alumina price and fall in imported price could be the increase in indigenous production backed by operation resumption in Henan, Guizhou, and Chongqing, along with newly added capacity. This could result in the demand fall for imported material and, thus, the price fall.

However, A00 aluminium ingot price has dwindled by RMB 160 per tonne on Monday, July 17, to peg at RMB 18,350 per tonne, following an increase of RMB 70 per tonne on Friday. The average prices are estimated to range between RMB 18,330 per tonne and RMB 18,370 per tonne, with a spot contract to be traded at a discount price of RMB 10 per tonne and a premium price of RMB 30 per tonne.

Among all the Chinese provinces, Foshan has seen the sharpest fall of RMB 220 per tonne to open the week at RMB 18,200 per tonne. In Chongqing, Wuxi, and Hangzhou, A00 aluminium ingot price has plunged by RMB 190 per tonne, RMB 170 per tonne, and RMB 160 per tonne to stand at RMB 18,280 per tonne, RMB 18,340 per tonne, and RMB 18,350 per tonne, respectively. In Gongyi and Linyi, the primary aluminium ingot price has decreased by RMB 140 per tonne to peg at RMB 18,260 per tonne and RMB 18,300 per tonne, while the price in Shenyang and Tianjin has fallen by RMB 120 per tonne and RMB 100 per tonne to RMB 18,310 per tonne and RMB 18,380 per tonne.

In line with the A00 aluminium ingot price fall, aluminium alloys prices have also seen a downtrend at the beginning of the week. Aluminium alloy (A356) price has shrunk by RMB 150 per tonne to rest at RMB 19,050 per tonne, while the prices of aluminium alloys (ADC12) and aluminium alloy (A380) have declined by RMB 50 per tonne to RMB 18,600 per tonne and RMB 19,600 per tonne, respectively.