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03 APRIL 2018 AL CIRCLE

Pre-baked anode prices decline due to re-stocking by smelters; A00 aluminium ingot price sees a sharp hike

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

As updated by Shanghai Metal Market, pre-baked anode prices are experiencing a decline on 4th month in a row. As per the update, Weiqiao Group has negotiated with its suppliers to lower the purchasing price by RMB 300 per tonne for April and closed it at RMB 3,590 per tonne. This indicates that an oversupplied pre-baked anode market is lessening prices due to growing demand for raw materials from smelters and falling of refined aluminium inventory post winter heating season.

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Following Weiqiao's move, other smelters are getting involved in negotiation with their respective suppliers and lowering prices by some RMB 300 per tonne. Prices are expected to be cut by another RMB 200 per tonne in May and likely to fall below average costs based on current input cost.

On the other hand, other raw materials like bauxite and alumina remain unchanged and experience no significant movement in their prices today.

In another update from Shanghai Metal Market, average A00 Aluminium Ingot prices go through a turning point and witness a sharp rise from RMB 13740 per tonne on April 2, 2018 to RMB 13980 per tonne on April 3, 2018. The prices are expected to range between RMB 13960 and RMB 14000 per tonne with spot discounts to settle at RMB 60 to RMB 20 per tonne. Primary ingot prices even registered a hike of RMB 50 to 240 across all domestic markets. While in East, average A00 Aluminium Ingot prices hovered at RMB 14010 per tonne, in South, average prices registered gain at RMB 14020 per tonne.

The above chart shows price moves of A00 Aluminium Ingot in major markets of China

This has been a great move as far the A00 aluminium ingot prices are concerned. All attributes go to the recommencing of aluminium production in China after a temporary halt due to environmental and legal restrictions during winter heating season.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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