Chinese A00 aluminium ingot price drops amidst lower demand and bearish input costs

After rising back-to-back last two days, the A00 aluminium ingot price has recorded a plunge once again in China today, on January 8, 2019, Shanghai Metals Market found. The ingot price after rising in last two consecutive days had reached RMB 13,350 per tonne but today it dropped RMB 40 per tonne to RMB 13,310 per tonne. Since the beginning of the year 2019, the ingot price remained sluggish, as there had been a continued weakening of ingot demand and consumption among downstream buyers.

Today, the average prices are expected to range between RMB 13,290 per tonne and RMB 13,330 per tonne, with spot discount to settle at RMB 40 per tonne. The average spot discount is estimated to be at RMB 20 per tonne, marking a growth of RMB 10 per tonne.

In the east, Wuxi and Hangzhou, the prices have dropped RMB 45 per tonne and RMB 30 per tonne to stand at RMB 13,310 per tonne and RMB 13,335 per tonne, respectively while that in the south and north dipped RMB 70 per tonne and RMB 60 per tonne to hover at RMB 13,420 per tonne and RMB 13,300 per tonne.

Alumina spot price, on the other hand, continues to show restraint today as well at RMB 2,928 per tonne after its last drop on January 4 from RMB 2,934 per tonne. In the east, the alumina price is hovering at RMB 2,970 per tonne while in the central, north, and south, the prices are standing at RMB 2,940 per tonne, RMB 2,910 per tonne and RMB 2,930 per tonne, respectively.

Other input costs like that of bauxite, the pre-baked anode, aluminium fluoride, and aluminium powder show no change as well.

Thus, in the background of bearish input costs, the A00 aluminium ingot price continues to remain sluggish. Moreover, the lowered demand for primary aluminium among downstream markets fails to push up the ingot price.