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29 JANUARY 2019 AL CIRCLE

Chinese A00 aluminium ingot price continues to drop on growing inventories and lower transactions

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

In the background of growing social inventories of primary aluminium by around 31,000 tonnes over the weekend and low transactions in the spot market, the A00 aluminium ingot price has recorded a plunge today, January 29, by RMB 120 per tonne. According to Shanghai Metals Market, yesterday, on January 28, the price was at RMB 13,410 per tonne and today after the drop it hovers at RMB 13,290 per tonne. This takes the price again close to as low as it was in the mid of this month. The average prices today are expected to range between RMB 13,270 per tonne and RMB 13,310 per tonne, with spot discounts to settle at RMB 90 per tonne to RMB 50 per tonne.

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While this significant plunge has touched all the major markets in China, the A00 aluminium ingot price in the east (Wuxi and Hangzhou) has declined by RMB 125 per tonne to settle at RMB 13,295 per tonne. In the south and north, the prices have decreased by RMB 120 per tonne and RMB 100 per tonne to stand at RMB 13,350 per tonne and RMB 13,300 per tonne, respectively.

Besides growing inventories and low transactions, the drop in alumina spot price could also be attributed to today’s aluminium price decline in China. SMM found that the alumina price has registered a drop today by RMB 9 per tonne and hovering at RMB 2808 per tonne. This marks a sluggish trend in alumina spot price over the entire month of January 2019.

In the east and central, the alumina price has declined by RMB 20 per tonne to RMB 2,850 per tonne and RMB 2,830 per tonne respectively. But in the north and south, the prices show restraint today at RMB 2,780 per tonne and RMB 2,810 per tonne.

The Australian alumina FOB price also registers no change from US$364 per tonne, as on January 29.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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