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06 AUGUST 2018 AL CIRCLE

Primary aluminium price hikes further amid lowered inventory on limited supplies

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

China’s inventory of primary aluminium had been consistently registering a drop due to limited supplies from smelters. Today, August 6, showed no exception either. The inventory, including SHFE warrants, dropped 5000 tonnes from Thursday, August 2, to stand at 1.776 million tonnes as of August 6, 2018, Shanghai Metals Market found. Fewer arrivals from smelters in Xinjiang accounted for the drop.

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However, the inventory recorded a slower decline as of today compared with Thursday, August 2, when the inventory witnessed a drop by 14,000 tonnes from July 26 to stand at 1.78 million tonnes.

Some of the major Chinese cities recorded a drop in inventory from the previous day. In Wuxi and Jiangsu, the inventory dwindled from 760,000 tonnes to 752,000 tonnes, while in Shanghai and Gongyi and Henan, the inventories declined from 414,000 tonnes to 413,000 tonnes and from 163,000 tonnes to 158,000 tonnes, respectively. Some others cities, such as Nanhai and Guangdong, Tianjin, and Chongqing witnessed a hike. The inventory in Linyi and Shandong, recorded no change, on the other hand.

Driven by the inventory drop due to limited supplies of primary aluminium, A00 aluminium ingot price did not miss to register a hike today from RMB 14280 per tonne, as of August 3, to RMB 14300 per tonne. The average prices are expected to rally between RMB 14280 per tonne and RMB 14320 per tonne, with spot discounts to settle at RMB 70 per tonne to RMB 30 per tonne.

The ingot price in the east and north, however, tumbled today from RMB 14295 per tonne to RMB 14285 per tonne and from RMB 14310 per tonnes to RMB 14300 per tonne. In the south, the price grew by RMB 5 from the last day to hover at RMB 14455 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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