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24 DECEMBER 2018 AL CIRCLE

Chinese primary aluminium inventories drop slower over the weekend; A00 ingot price increases RMB 60/t

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to Shanghai Metals Market, social inventories of primary aluminium across eight major consumption areas in China, including SHFE warrants, dropped 4,000 tonnes over the weekend ended on Monday, December 24, to stand at 1.276 million tonnes.

The decline was, however, slower compared to the previous day, primarily because of more arrivals from smelters over the weekend.

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The current status of primary aluminium inventories across China is given in the chart below:

In the background, the spot price of A00 aluminium ingot recorded a jump today, on December 24, from RMB 13,560 per tonne to RMB 13,620 per tonne, marking a growth of RMB 60 per tonne. This marks a rise for the second day in a row after a plunge on December 20, from RMB 13,590 per tonne to RMB 13,510 per tonne. On December 21, the price increased from RMB 13,510 per tonne to RMB 13,560 per tonne. Today, the average prices are expected to range between RMB 13,600 per tonne and RMB 13,640 per tonne, with spot discounts to settle at RMB 90 per tonne to RMB 50 per tonne.

According to another update from SMM, social warehouses across five major consumption areas in China saw 50,900 tonnes of aluminium billet delivered in the week ended December 24. The weekly deliveries rose by 1,900 tonnes from the week through December 17.

Aluminium alloys (ADC12) spot price showed restraint today through December 20 at RMB 15,000 per tonne. The price of aluminium alloy (A356), on the other hand, rose by RMB 50 per tonne and came in at RMB 14,200 per tonne. Aluminium alloy (A380) price also did not show any change from RMB 15,800 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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