SMM A00 aluminium ingot price continues to show bearish price trend, declining by RMB250/t today

On Tuesday, July 16, China's A00 aluminium ingot price has contracted by RMB 250 per tonne to settle at RMB 19,790 per tonne. The bearish trend in China's A00 aluminium ingot price can be attributed to weaker demand in the downstream sector, despite rising production levels.

As per the SMM data, the average prices are expected to stand between RMB 19,770 per tonne and RMB 19,810 per tonne, with the spot contract price expected to be traded at a discount price of RMB 60 to RMB 20 per tonne.

According to data from the National Bureau of Statistics (NBS), China, a dominant force in the global aluminium market, produced a staggering 3.67 million tonnes of primary aluminium in June. This marked a 6.2 per cent year-on-year surge and set a new record for the highest monthly production since November 2014, according to Reuters data.

Region-wise price changes

The domestic aluminium ingot prices have dwindled in all provinces, with the highest in Wuxi, where it has declined by RMB 260 per tonne to clock at RMB 19,780 per tonne. In regions like Foshan, Chongqing and Tianjin, the domestic aluminium ingot prices have contracted by RMB 250 per tonne to dock at RMB 19,600 per tonne, RMB 19,760 per tonne and RMB 19,840 per tonne. In Gongyi, the price has slumped by RMB 240 per tonne to halt at RMB 19,700 per tonne, followed by a decline of RMB 230 per tonne in Hangzhou and Linyi, where it closed at RMB 19,810 per tonne and RMB 19,840 per tonne.

According to SMM's prediction, the increased domestic production of aluminium is expected to keep the price of A00 aluminium ingots low until demand catches up with the higher output levels. Additionally, tariffs on China's aluminium are reducing global consumption, which is hindering any significant price growth.

Other prices

The domestic price of low-carbon aluminium has also witnessed a significant downfall. The price as of today has nosedived by RMB 283 per tonne to come in at RMB 20,505 per tonne. As per the SMM data, the price of high-purity aluminium (99.99%) and high-purity aluminium (99.996%) has declined by RMB 200 per tonne to RMB 27,200 per tonne and RMB 28,200 per tonne, respectively.

The price of aluminium alloy (A356) has slumped by RMB 250 per tonne to RMB 20,250 per tonne, with the average price standing between RMB 20,110 per tonne and RMB 20,400 per tonne. As per the SMM data, both (ADC12) and (A380) prices have fallen by RMB 100 per tonne to settle at RMB 19,800 per tonne and RMB 20,800 per tonne, respectively.

For aluminium alloys (ADC12), the average prices may stand between RMB 19,700 per tonne and RMB 19,900 per tonne. On the same day, for (A380) the average price is expected to range between RMB 20,700 per tonne and RMB 20,900 per tonne.