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07 MAY 2018 AL CIRCLE

Downstream consumers stockpiling more on ingots than billets; major alloy prices remain unchanged

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Aluminium downstream players started stockpiling raw material in the last week and continuing to do so until this week, resulting in active trading at aluminium spot market across East and South China, Shanghai Metal Market research found.

Traded prices for aluminium billet processing fees, however, have dipped to as low as RMB 700 per tonne last week on Friday, May 4, 2018, with fewer transactions than aluminium ingots, SMM learned. This was primarily due to the increasing use of aluminium ingots in processing plants than the aluminium billets because of higher processing fees than the former.

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Aluminium rod processing fees, on the other hand, have surged in Guangdong to RMB 850 per tonne last week from RMB 500 per tonne in mid-April, as a consequence of a plunge in aluminium billet inventory and supplies of molten aluminium.

According to the update from SMM on May 7, aluminium alloys (ADC12) remained unchanged at RMB 15900 per tonne since Wednesday, May 2. Aluminium alloy (A356) and aluminium alloy (A380) price, nonetheless, surged marginally from RMB 15150 to RMB 15,200 per tonne and from RMB 16650 to RMB 16700 per tonne respectively.

More details are as follows:

Average A00 aluminium ingot price, on the other hand, has been exhibiting a ceaseless growth on account of the more use of aluminium ingots in processing plants than billets. On Monday, May 7, 2018, it witnessed a surge from RMB 14450 per tonne, as on May 4 to RMB 14530 per tonne. The prices are expected to range between RMB 14510 per tonne and RMB 14550 per tonne, with no changes in spot discount, settled at RMB 70 to RMB 30 per tonne.

Major Chinese markets have also witnessed a rise in average ingot price, as in East it grew from RMB 14460 to RMB 14560 per tonne and in North and South, it jumped from RMB 14515 to RMB 14605 per tonne and from RMB 14460 to RMB 14540 per tonne respectively.

 


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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