China’s domestic alumina price continues its downtrend at RMB2776/t causing losses to refineries; aluminium ingot price gains RMB20/t

The average alumina spot price has continued to decline across China by RMB 2 per tonne on Monday, November 14, to stand at RMB 2,776 per tonne. In Shandong, alumina price has lost RMB 10 per tonne to open the week at RMB 2,710 per tonne, according to the Shanghai Metals Market.

As a result of the continuous downtrend in the alumina spot price, alumina refineries, particularly in Shanxi and Henan, are deep in losses. Zhongmei Aluminum, Taixing Aluminium and Magnesium, and Xiaoyi Huaqing, each with 400,000 tonnes, have already collectively idled 1.2 million tonnes of capacity. Besides them, many other refineries in Shanxi, Jiaokou, and Xinghua have suspended production due to raw material shortage and higher energy costs.

However, on the other hand, A00 aluminium ingot price has grown by RMB 20 per tonne over the weekend ended November 14, amounting to RMB 18,780 per tonne, found SMM. The average prices are expected to range between RMB 18,760 per tonne and RMB 18,800 per tonne, with a spot contract to be traded at a discount price of RMB 70-30 per tonne.

Except Foshan, whereby the ingot price has decreased by RMB 30 per tonne to stand at RMB 18,960 per tonne, all other Chinese provinces have seen slight rise on Monday. In Hangzhou, A00 aluminium ingot price has increased by RMB 50 per tonne to settle at RMB 18,800 per tonne, followed by the growth of RMB 40 per tonne in Linyi to RMB 18,830 per tonne. In Wuxi, the ingot price has built up by RMB 50 per tonne to rest at RMB 18,780 per tonne, while that in Gongyi and Shenyang has gained RMB 30 per tonne to hover around RMB 18,650 per tonne and RMB 18,720 per tonne. In Chongqing and Tianjin, A00 aluminium ingot price has inched up by RMB 20 per tonne and RMB 10 per tonne to peg at RMB 18,950 per tonne and RMB 18,760 per tonne, respectively.

In line with A00 aluminium ingot price drop, aluminium alloy (A356) price has suffered a loss of RMB 50 per tonne to rest at RMB 20,050 per tonne, with average prices likely to range between RMB 19,900 per tonne and RMB 20,200 per tonne.

But aluminium alloys (ADC12) price and aluminium alloy (A380) price have remained restrained at RMB 19,200 per tonne and RMB 20,200 per tonne, respectively.