COVID-19 wrecks aluminium prices and input costs in China: Primary ingot price declines by RMB570/t and alumina price by RMB32/t

A00 aluminium ingot price has again recorded a sharp decline of RMB 570 per tonne to stand to the further lowest at RMB 11,220 per tonne on Monday, March 23, according to Shanghai Metals Market data. On Thursday, March 19, the price had recorded a decrease of RMB 790 per tonne to RMB 11,730 per tonne. Today, the average prices are expected to range between RMB 11,200 per tonne and RMB 11,240 per tonne, with spot contract to be traded at a discount price of RMB 100 per tonne to RMB 60 per tonne.

Shenyang has seen the highest decline of RMB 610 per tonne, followed by Hangzhou RMB 590 per tonne, Foshan RMB 580 per tonne, Wuxi and Linyi RMB 570 per tonne, and RMB Gongyi RMB 560 per tonne. In Tianjin and Chongqing, the A00 aluminium ingot price has reduced by RMB 540 per tonne and RMB 520 per tonne, respectively.

The price of aluminium alloy (A356) has slipped from RMB 12,500 per tonne to 11,950 per tonne, registering a decline of RMB 550 per tonne, as of March 23. The average prices are expected to range between RMB 11,900 per tonne and RMB 12,000 per tonne.

The prices of aluminium alloys (ADC12) and aluminium alloy (A380) have plunged by RMB 300 per tonne to RMB 14,000 tonnes and RMB 14,850 per tonne, respectively.

Input costs such as the average price of alumina in the spot market has neither been spared by the hit of Coronavirus outbreak. The price today has declined by RMB 32 per tonne, the highest this year, to come in at RMB 2,531 per tonne.

In the north, the price has reduced by RMB 40 per tonne to RMB 2,530 per tonne and that in the east and central by RMB 25 per tonne to RMB 2,540 per tonne and RMB 2,550 per tonne. In the south, however, the average alumina price has remained restrained at RMB 2,520 per tonne.

The Australian alumina FOB price has decreased further by US$17 per tonne to US$ 1,958 per tonne.