Chinese alumina price crawls up to RMB2970/t after four-day restraint; Market destocking lifts A00 aluminium ingot price by RMB240/t

The average alumina spot price in China has increased by RMB 7 per tonne on Thursday, March 24, after remaining restrained for the past four days at RMB 2,963 per tonne. According to the Shanghai Metals Market, the rise today has brought the domestic alumina spot price to RMB 2,970 per tonne.

In Lianyungang and Bayuquan, alumina spot price has hiked by RMB 50 per tonne to settle at RMB 3,425 per tonne and RMB 3,525 per tonne, respectively, followed by the growth of RMB 20 per tonne in Shandong and Guangxi to RMB 2,920 per tonne and RMB 2,960 per tonne. In Shanxi, alumina price has gained RMB 10 per tonne to RMB 2,965 per tonne, while the price in Henan and Guizhou has remained muted at RMB 3,000 per tonne and RMB 2,965 per tonne as of March 24. 

On the same day, A00 aluminium ingot price has continued to surge by RMB 240 per tonne to exceed RMB 23,000 per tonne. As per SMM data, the price has settled at RMB 23,160 per tonne, with average prices likely to range between RMB 23,140 per tonne and RMB 23,180 per tonne. Destocking of Chinese aluminium market, leading to the further downfall of inventories, could be attributed to the continued primary aluminium ingot price rally. Today, the spot contract is estimated to be traded at a premium price of RMB 110-70 per tonne. 

In Wuxi and Hangzhou, A00 aluminium ingot price has expanded by RMB 245 per tonne to stand at RMB 23,160 per tonne and RMB 23,165 per tonne, followed by the increase of RMB 240 per tonne in Foshan to RMB 23,190 per tonne, RMB 230 in Shenyang to RMB 23,080 per tonne, and RMB 225 in Linyi to RMB 23,140 per tonne, respectively, on March 24. 

The ongoing positive purchase sentiment among the downstream sector has also lifted the price of aluminium alloy (A356) for the second day in a row. SMM shows the price has built up by RMB 250 per tonne to stand at RMB 24,600 per tonne on March 24. The average prices are expected to range between RMB 24,500 per tonne and RMB 24,700 per tonne. 

Aluminium alloys (ADC12) price and aluminium alloy (A380) price have grown by RMB 50 per tonne to rest at RMB 22,600 per tonne and RMB 23,600 per tonne, learned SMM.