Primary aluminium trading in east China stands narrow against the surged price

Trading in the spot aluminium market in east China stood narrow on Thursday, August 9, compared to the previous day as surging prices jeopardised downstream consumers’ buying interest, Shanghai Metals Market learned.

According to SMM, A00 aluminium ingot price clocked a significant hike right from RMB 14290 per tonne, as of August 8, to RMB 14660 per tonne on August 9, indicating surge by RMB 170 per tonne.

The SHFE August contract climbed RMB 300 per tonne from overnight as of noon, driven by the industrial action at Alcoa’s Pinjara alumina refinery in Western Australia.

Spot discounts in the east settled at RMB 40 per tonne, while transactions in Shanghai hovered at RMB 14630 per tonne to RMB 14660 per tonne and that in Wuxi and Hangzhou at RMB 14620 per tonne to RMB 14660 per tonne and RMB 14640 per tonne to RMB 14660 per tonne, respectively.

Sellers across the region were not only keen to offload their cargoes but also held their offers firm. Some major traders showed interest in making purchases but others remained cautious.

A similar trend was also seen in south China. Sellers were keen to offload cargoes but downstream customers were unsure to make purchases. However, some activity among traders injected liquidity into the market.

Most transactions in Guangdong were heard at RMB14760 per tonne to RMB 14770 per tonne, with the Guangdong-Shanghai price spread at RMB 140 per tonne.

However, as of today, August 10, the ingot price stands down a bit at RMB 14490 per tonne. The average price is expected to range between RMB 14470 per tonne and RMB 14510 per tonne, with spot discounts to settle at RMB 50 to RMB 10 per tonne.

Processing fees for aluminium billet in Guangdong held steady and the trading turned better than the previous day. Fees for 90 mm materials were at RMB 410 to RMB 450 per tonne, fees for 120 mm products at RMB 390-430 per tonne, and fees for 150/178 mm at RMB 350-390 per tonne.