China’s aluminium ingot price continues to decline, marking M-o-M fall of RMB670/t; Bauxite price in Guizhou records 5% growth

On Thursday, July 11, China’s domestic A00 aluminium ingot price has continued to decline by RMB 70 per tonne to settle at RMB 20,140 per tonne, found the Shanghai Metals Market. For the past one week, China’s domestic aluminium price has shown a bullish trend, marking a significant downfall of RMB 240 per tonne. Today, the average prices are estimated to range between RMB 20,120-20,160 per tonne, with spot contract to be traded at a discount price of RMB 40 per tonne to a premium price of RMB 0 per tonne.

On a month-on-month calculation, China’s aluminium ingot price has shrunk by RMB 670 per tonne from RMB 20,810 per tonne, but on an annual basis, the price has recorded an upturn of RMB 1,890 per tonne from RMB 18,250 per tonne.

Aluminium ingot price movement across regions

In Shenyang, A00 aluminium ingot price has slipped by RMB 110 per tonne to stand at RMB 20,070 per tonne, followed by a fall of RMB 90 per tonne in Foshan, Chongqing, and Linyi to peg at RMB 20,000 per tonne, RMB 20,090 per tonne, and RMB 20,140 per tonne, respectively. In Wuxi and Hangzhou, the ingot price has shed off RMB 70 per tonne to stand at RMB 20,140 per tonne, while the price in Tianjin has decreased by RMB 60 per tonne to RMB 20,170 per tonne.

The domestic low-carbon aluminium price has witnessed a downturn of RMB 90 per tonne to RMB 20,945 per tonne, while the high-purity aluminium price (99.99%) has plunged by RMB 100 per tonne to RMB 27,500 per tonne, with average prices likely to range between RMB 27,100-27,900 per tonne.

Raw material prices

Among primary aluminium input costs, bauxite (6.5≤Al/Si＜7.5) price in Guizhou has increased by RMB 5 per tonne to settle at RMB 520 per tonne as of July 11. The average prices are expected to range between RMB 500-540 per tonne, found SMM.

With the latest hike, the domestic bauxite price in Guizhou has attained a month-on-month growth of 5 per cent compared to RMB 495 per tonne.

However, the same grade of bauxite in Guangxi has remained restrained at RMB 365 per tonne, with average prices around RMB 350-380 per tonne.

The domestic average alumina spot price stands at RMB 3,903 per tonne, continuing to remain unchanged since June 20. However, the price of imported alumina from Australia has tumbled by US$14 per tonne to US$479 per tonne, marking a week-on-week fall of US$26 per tonne from US$505 per tonne.

Aluminium alloy prices

In response to the continued decline in A00 aluminium ingot price, aluminium alloy prices have recorded declines on Thursday, July 11. According to SMM, all the alloys today have registered price drops of RMB 50 per tonne, unanimously. Thus, aluminium alloys (ADC12) price has come in at RMB 19,950 per tonne, with average prices ranging between RMB 19,850-20,050 per tonne, and aluminium alloy (A356) price has settled at RMB 20,600 per tonne, with average prices hovering around RMB 20,400-20,800 per tonne.

Aluminium alloy (A380) and aluminium alloy (A360) prices have clocked at RMB 20,950 per tonne.