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02 APRIL 2018 AL CIRCLE

China’s aluminium inventory dwindled again for the second week; SHFE recorded a price rise

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

China’s refined aluminium inventory has been exhibiting a drop for past two weeks owing to more and more consumption of downstream products in the market. According to the Shanghai Metal Market data, China’s aluminium inventory including SHFE warrants hovered at 2.23 million tonnes on Monday April 2, 2018, down from 2.24 million tonnes on Thursday March 29 and 2.29 million tonnes on Monday March 19.

The inventory has dropped for two weeks in a row, with the transactions of 900,000 tonnes of aluminium in Wuxi and Jiangsu, 444,000 tonnes in Shanghai, 421,000 tonnes in Nanhai and Guangong, 195,000 tonnes in Gongyi and Henan.

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However, deliverable Shanghai Futures Exchange (SHFE) aluminium stocks recorded a price rise of about 1 million tonnes, while the metal declined by 10.7 per cent in the first quarter of the year, 2 per cent more than the previous quarter. The cause of the decline attributes to the recently-enacted US tariffs on Chinese aluminium, resulting in a prospective trade war.

On the other hand, average A00 Aluminium Ingot prices witnessed a sharp rise from RMB 13620 per tonne to RMB 13740 per tonne, as on April 2, 2018. The prices are expected to range between RMB 13720 and RMB 13760 per tonne with spot discounts to settle at RMB 110 to RMB 70 per tonne.

Bauxite (6.0≤Al/Si<7.0) prices at Shanxi and Bauxite (6.0≤Al/Si<7.0) prices at Henan also saw a price fall to RMB 400 and RMB 415 per tonne respectively. Bauxite (6.5≤Al/Si<7.5) prices at Guangxi even declined to RMB 290 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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