Christmas boost for aluminium market: Prices climb on SMM, led by A00 ingot and alumina

On the day of Christmas, as the world is in a celebratory mood, the aluminium price on the Shanghai Metals Markert is on the hiking trend, bringing good news for investors. As of December 25, 2024, the Shanghai Metals Market (SMM) reported the following prices for alumina and aluminium ingots:

Image Source: https://www.ebay.com/itm/375156762748

Primary aluminium ingot pricing

A00 primary aluminium ingot has seen a constant rise for the past few days. The SMM A00 aluminium ingot price was RMB 19,830 per tonne, reflecting an increase of RMB 40 per tonne (0.20 per cent) from the prior day. The spot contract was traded on Wednesday with a discount price of RMB 20 per tonne to a discount of RMB 60 per tonne.

The average A00 aluminium ingot pricing has risen in all eight listed provinces, with average prices of A00 aluminium ingot listed as RMB 19,760 per tonne with a gain of RMB 40 in Gongyi (range between RMB 19,740 and RMB 19,780 per tonne), RMB 19,980 per tonne which gained RMB 30 in Foshan (range RMB 19,960-20,000 per tonne), RMB 19,840 per tonne (+50) in Wuxi ranging from RMB 19,830 to RMB 19,850 per tonne. The price averaged at RMB 19,850 per tonne in Hangzhou, Shenyang, Chongqing, and Tianjin, with an inflation range between RMB 10 to RMB 40. Only in Tianjin, there was an exception wherein the price was reduced by 10 RMB but stood to the same price. SMM listing showed the A00 price of Linyi ranging between RMB 19,870 to RMB 19,890 per tonne and averaging at RMB 19,880 per tonne (+10) in Linyi.

Alumina pricing

As of December 25, 2024, alumina prices in the Chinese market exhibited mixed movements across regions, with slight declines observed in some areas. The average national alumina price stood at RMB 5,731 per tonne, marking a decrease of RMB 8 per tonne (-0.14 per cent). In Shandong, prices were stable at an average of RMB 5,735 per tonne, while Shanxi saw a slight drop of RMB 10 (-0.17 per cent) to RMB 5,750 per tonne. Similarly, Henan experienced the highest among all the declines, with prices falling by RMB 20 per tonne (-0.35 per cent) to an average of RMB 5,700 per tonne. In contrast, Guangxi and Guizhou prices remained unchanged at RMB 5,740 per tonne, reflecting market stability in these regions. Premium regions such as Lianyungang and Bayuquan maintained higher averages of RMB 6,050 per tonne, with no changes reported. The Australian Alumina FOB price was steady at 670 USD per tonne, reflecting global price stability despite regional fluctuations. This mixed price trend highlights varying supply-demand dynamics across China's alumina production and trade hubs.

Other pricing

Low carbon aluminium picked up 39 bucks and nestled at RMB 21,004 per tonne, a 0.19 per cent additional to the previous session's closing pricing.

Trend Analysis

This upward trend in aluminium ingot prices is attributed to strong demand and offset rising raw material costs. Looking ahead, as Reuters report, new alumina production capacities expected to come online in 2025 are anticipated to ease supply constraints and potentially halt the record price rally observed this year.