Base metals diverged further in China market, with copper and nickel relatively stronger, and price divergence is expected to continue in the near term. The average price of A00 Aluminium Ingot drops from RMB 16,220/t on October 11 to stand at RMB 16,130/t today. The average price of A00 Aluminium Ingot would range between RMB 16040 – 16080/t.
SMM expects SHFE 1712 aluminium prices to range within RMB 16,200-16,450/t after a fall of nearly 2%. In east China’s spot aluminium market, spot discounts are expected to narrow down to RMB 120-80/t over SHFE 1710 aluminium contract on Thursday, October 12.
{alcircleadd}Average Aluminum Alloys Ingot (ADC12) price has dropped about RMB 50 per tonnes to RMB 16600/t today. The monthly average price stands at RMB 16652.78/t. Prices of some of the Aluminium alloy ingot grades in major Chinese markets have experienced a drop today simultaneously with the fall in A00 aluminium ingot prices. Today’s aluminium alloy prices across the various markets in China are presented in the table below:
The raw material prices in China remain unchanged as far as bauxite and prebaked anode prices are concerned. Australia bauxite prices are increasing at a slow but steady rate. However, despite the drop in aluminium price, Shanghai Metals Market Statistics shows the average spot alumina price continues to rise slowly through October.
The market is concerned about why Shandong has not yet released detailed plan of production limit during heating season. Weak aluminium consumption and record-high inventories of aluminium ingot, compared with zinc and lead with optimistic fundamentals are putting pressure on aluminium price in China at present.
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