Chinese A00 aluminium ingot price increases further on the drop of primary aluminium inventories

Social inventories of primary aluminium across eight major consumption areas in China, including SHFE warrants, declined further by some 37,000 tonnes from March 28 to come in at 1.641 million tonnes on April 4, found Shanghai Metals Market.

This drop in primary aluminium inventories marks the third consecutive weeks of decline as consumption continued to recover.

Today, the inventories in Wuxi, Jiangsu are hovering at 584,000 tonnes while that in Shanghai at 294,000 tonnes. In Nanhai, Guangdong and in Gongyi, Henan, the inventories are seen at 385,000 tonnes and 135,000 tonnes, respectively.

The chart below indicates the current status of primary aluminium inventories across all major Chinese consumption areas in more details.

On the drop of primary aluminium inventories, today, on April 4, the A00 aluminium ingot price increased by RMB 40 per tonne to stand at RMB 13,810 per tonne, found Shanghai Metals Market. This is the third consecutive rise of aluminium ingot price since it had a sharp fall from RMB 13,920 per tonne to RMB 13,740 per tonne on the first day of the month. However, even after the significant fall on April 1, the ingot price is still standing higher than the same period last month.

Today, the average prices of A00 aluminium ingot are expected to range between RMB 13,790 per tonne and RMB 13,830 per tonne, with spot discounts to settle at RMB 10 per tonne to RMB 30 per tonne.

The ingot price in the east (Wuxi and Hangzhou) is up by RMB 25 per tonne and RMB 30 per tonne to RMB 13,780 per tonne and RMB 13,800 per tonne. The ingot price in the south has also increased to RMB 13,800 per tonne, like that of the price in Hangzhou; while in the north, the price is at RMB 13,780 per tonne after rising by RMB 60 per tonne.