SMM A00 aluminium ingot price remains stoic at RMB18,830/t; Low carbon aluminium loses RMB20/t

Today, on January 22, the SMM A00 aluminium price has remained stagnant on its previous weekend’s position, recording a price of RMB 18,830 per tonne. If we consider China’s A00 aluminium ingot price on October 23, last year, there can be found a Quarter-on-Quarter descend of RMB 90 per tonne or 0.47 per cent from RMB 18,920 per tonne marked that day.

Similarly, if we take last year’s SMM aluminium price on December 22, there can be seen a Month-on-Month loss of RMB 290 per tonne or 1.52 per cent from RMB 19,120 per tonne logged that day. It is clear that China’s aluminium market was slowly regaining traction last December but the price is on the downhill since mid-January.

Decoding the prevailing conditions in China’s aluminium market

The Chinese market if facing a new trouble at this moment as Russian exports is flooding its warehouses, resulting in the aluminium price decline. China heavily relies on Africa for its raw material imports and the December 18 Guinea Fuel Depot blast has created a gap in the import of primary aluminium to China. Until this demand and supply crisis is met, China cannot smelt its own aluminium, letting it rely on foreign imports. Also, perennial traumas like a lower birth rate and a higher old-age population is a primary cause of trouble for China as in the next few years it might have a scarcity of daily workers, which is extremely essential for a labour and energy-intensive industry like aluminium.

China’s eight central provinces

China’s central provinces have more or less flashed the prices of last week, with the only spike recorded in Wuxi, where the A00 aluminium price grew by RMB 10 per tonne to close at RMB 18,820 per tonne. Other than that, the aluminium prices in Foshan and Shenyang both slumped by RMB 20 per tonne to officiate at RMB 18,950 per tonne and RMB 18,870 per tonne. All the other provinces marked stagnant prices:

Gongyi – RMB 18,770 per tonne

Hangzhou – RMB 18,830 per tonne

Chongqing – RMB 18,850 per tonne

Tianjin – RMB 18,910 per tonne

 Linyi – RMB 18,910 per tonne

China’s low carbon aluminium price has dived by RMB 20 per tonne to officially settle at RMB 19,699 per tonne.

The prices of aluminium alloy (A380) and aluminium alloys (ADC12) have both dropped RMB 50 per tonne to arrive at RMB 20,800 per tonne and RMB 19,800 per tonne.