China’s domestic alumina spot price has been rallying uninterruptedly since April 22 due to increased demand but limited supply because of production cuts at some refineries, especially in Henan, for insufficient availability of bauxite. Over the past weekend, the ore price has gained RMB 2 per tonne to reach RMB 3,721 per tonne as of May 20, up by 12.18 per cent from RMB 3,317 per tonne a month ago.
In Shandong and Guangxi, alumina prices have increased by RMB 10 per tonne and RMB 5 per tonne, respectively to come in at RMB 3,680 per tonne and RMB 3,750 per tonne, according to the Shanghai Metals Market (SMM).
Australian alumina FOB price has continued to remain restrained at US$425 per tonne since May 16.
Backed on the increase in alumina spot price, China’s domestic A00 aluminium ingot price has also escalated by RMB 140 per tonne over the weekend to settle at RMB 20,860 per tonne as of May 20. The average prices are ranged between RMB 20,840 per tonne and RMB 20,880 per tonne, with spot contract to be settled at a discount price of RMB 120 per tonne and RMB 80 per tonne.
On a month-on-month basis, the ingot price to date is up by 2.56 per cent from RMB 20,340 per tonne, while on an annual basis, the price is 12.51 per cent higher than RMB 18,540 per tonne. This price hike over the period of time has increased the smelters’ profit margin, propelling them to recommence or boost operations. As a result, the growing production of aluminium ingot is lifting up the demand for alumina and its prices.
In Chongqing, the ingot price has elevated by RMB 170 per tonne over the weekend to RMB 20,820 per tonne, followed by a hike of RMB 140 per tonne in Hangzhou, Shenyang, and Linyi to RMB 20,850 per tonne, RMB 20,780 per tonne, and RMB 20,860 per tonne, respectively. In Foshan and Wuxi, A00 aluminium ingot price has settled at RMB 20,770 per tonne and RMB 20,850 per tonne, seeing a rise of RMB 130 per tonne on May 20.
On the same day, China’s domestic low-carbon aluminium price has climbed up by RMB 151 per tonne to start the week at RMB 21,804 per tonne, found SMM.
Aluminium alloys prices have neither shied away from recording a growth over the weekend. Aluminium alloys (ADC12) and aluminium alloy (A380) prices have gained unanimously by RMB 100 per tonne to settle at RMB 20,500 per tonne and RMB 21,500 per tonne on May 20. Aluminium alloy (A356) price, on the other hand, has expanded by RMB 150 per tonne to RMB 21,400 per tonne, learned SMM.
