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09 AUGUST 2018 AL CIRCLE

Lower aluminium billet inventories on limited supplies elevate the alloy price in spot market

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

After five consecutive weeks of increase, aluminium billet inventories have sighted a slight plunge in China on Thursday August 9, backed on limited arrivals from producers, Shanghai Metals Market found. From last Thursday, August 2, the inventories of 6063 aluminium billet have dropped 2,400 tonnes to hover at 82,800 tonnes, as of August 9, SMM data showed.

To know more about the status of aluminium billet inventories across all the major Chinese markets, you may refer the chart below.

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On the face of tight availability of aluminium billet due to thin supplies to the inventories, the spot market price of the secondary aluminium could not restrain but registered a significant hike by RMB 100 per tonne. As of today, August 9, the price of aluminium alloys (ADC12) stands at RMB 15650 per tonne compared to RMB 15550 per tonne on August 8, 2018. This marks a growth after more than two months. The rise in aluminium alloys (ADC 12) spot price was last seen on 7th of June, 2018, from RMB 15800 per tonne to RMB 15850 per tonne.

As far as the primary aluminium is concerned, the inventories across eight major consumption areas in China have also recorded a decline today. According to the data shown by SMM, the inventories, including SHFE warrants, stand at 1.775 million tonnes today, after dropping 6,000 tonnes from last Thursday, August 2. This marks a week-on-week drop of 14,000 tonnes seen on August 2 and week-on-week drop of 28,000 tonnes recorded on July 26.

For more details, refer the chart below:

A00 ingot spot price also increases today, from RMB 14290 per tonne to RMB 14660 per tonne, backed on lower inventories. The average prices are likely to range between RMB 14640 per tonne and RMB 14680 per tonne, while the spot discounts to settle at RMB 60 per tonne to RMB 20 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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