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06 NOVEMBER 2017 AL CIRCLE

Prebaked anode price sees a rise in major Chinese markets today; A00 ingot fluctuates alternatively

EDITED BY : BEETHIKA BISWAS 2MINS READ

We learnt on October 31 that prebaked anode sales price in Shandong for November delivery may rise up to RMB 150 /tonne. Carbon plants and Weiqiao Group have been so far under negotiation over prebaked anode prices in November. Today, the average price of prebaked anode price in the Central China market has increased RMB 145 /tonne to stand at RMB 4365 /tonne from a stagnant RMB 4220 /tonne. In the Northwest China market the average price has increased RMB 150 /tonne to stand at RMB 4750 /tonne from RMB 4600/tonne. It was expected prebaked anode supply will be tight during winter heating season. Environmental checks have driven the rise in calcined coke prices which sent ripple effects to prebaked anode prices. 

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SHFE Base Metals including keeps differentiated and volatile, with mixed results at closure. Due to more than anticipated supply of primary metal and weak consumption of downstream enterprises, aluminium price is estimated to keep weak and volatile. According to SMM SHFE Aluminium Main Contract will be volatile between RMB 16,000 and 16,350 per tonne, testing below support of RMB16, 000 per tonne.

As per SMM research, this week Shanghai inventories have gained about 10,000 tonnes. SMM thinks on one hand, Tianjin stocks are shipped to Shanghai.

As updated by Shanghai Metals Market, average Prices of A00 aluminium ingot have plunged significantly across all markets today on November 6 after the rise on Friday last week. Average A00 aluminium ingot price has dropped RMB 110/t from RMB 15,980/t on November 3 and stood at RMB 15870/t today.  After a long time A00 ingot prices have plunged below RMB 16,000/t mark.

The drop in aluminium A00 Aluminum prices have continued in all other individual markets in China. A00 ingot prices have registered a drop from RMB 100/t to RMB 135/t across all markets. In the spot market aluminium is trading at a discount of RMB 90-50 /tonne.

Last week LvLiang City released the action plan of comprehensive control for air pollution during autumn and winter of 2017-2018, urging alumina production to limit by 30%. But it is learnt by SMM that the spread version in market of this plan deleted the 30% production limit of alumina.  This will increase the possibility of unlimited alumina production in Lvliang City.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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