Chinese alumina price extends decline by RMB10/t; A00 aluminium ingot price also falls despite further dip in inventories

The average spot price of alumina in China continues to plunge for the fifth day in a row on December 12 by RMB 10 per tonne to RMB 2,429 per tonne, found Shanghai Metals Market. In all the major markets in the east, north, and central as well, the price has declined by RMB 10 per tonne to RMB 2,430 per tonne and RMB 2,450 per tonne, respectively. In the south, however, the price has remained restrained at RMB 2,520 per tonne.

The imported alumina price and also the Australian Alumina FOB price have shown no sign of change from RMB 2,500 per tonne and US$ 280 per tonne.

The A00 aluminium ingot price has also recorded a drop today, on December 12, despite the further fall in primary aluminium inventories. According to SMM, the aluminium ingot price has come in at RMB 14,080 per tonne after declining by RMB 50 per tonne. The average prices are expected to range between 14,060 per tonne and RMB 14,100 per tonne, with spot contract to be traded at a premium price of RMB 0-40 per tonne.

The social inventories of primary aluminium across eight major consumption areas, including SHFE warrants, have decreased by 57,000 tonnes week-on-week to 648,000 tonnes. On last Thursday, December 5, the inventories were at 705,000 tonnes after declining by 50,000 tonnes over the week.

The chart below indicates the current status of primary aluminium inventories across China in more details:

Today, Wuxi has witnessed the highest decline in A00 aluminium ingot price by RMB 70 per tonne to RMB 14,060 per tonne, followed by Shenyang and Gongyi by RMB 65 per tonne to RMB 14,055 per tonne and RMB 13,995 per tonne. In Hangzhou and Chongqing, the aluminium ingot price has dropped by RMB 50 per tonne to RMB 14,090 per tonne and RMB 14,110 per tonne, while that in Foshan, Tianjin, and Linyi by RMB 40 per tonne and RMB 30 per tonne to RMB 14,070 per tonne, RMB 14,090 per tonne, and RMB 14,110 per tonne, respectively.