SMM aluminium ingot price marks a W-o-W fall of RMB390/t with a decline of RMB90/t on Aug 8

According to Shanghai Metals Market (SMM) survey, as of August 8, the SMM A00 aluminium ingot price has descended by RMB 90 per tonne to officially close at RMB 18,780 per tonne, with the average prices ranging between RMB 18,760 per tonne and RMB 18,800 per tonne. The spot contract is likely to be traded at a discount price of RMB 70-30 per tonne, with an average of RMB 50 per tonne.

On a week-on-week calculation, the ingot price has edged a fall of RMB 390 per tonne from RMB 19,170 per tonne, while that on a monthly basis has nosedived by RMB 1,450 per tonne from RMB 20,230 per tonne.

China’s domestic low carbon aluminium price has decreased by RMB 71 per tonne to close at RMB 19,694 per tonne. The price of high-purity aluminium (99.99%) has also contracted by RMB 100 per tonne to close at RMB 26,000 per tonne, with average prices to range between RMB 25,600-26,400 per tonne.

Regin-wise analysis:

Today, aluminium prices have declined across eight main provinces in China. Gongyi, Wuxi, and Hangzhou have experienced the steepest drop, with prices falling by RMB 90 per tonne. This has brought the aluminium price in Gongyi to RMB 18,700 per tonnes, and in Wuxi and Hangzhou to RMB 18,780 per tonne. In Chongqing, A00 aluminium ingot price has decreased by RMB 80 per tonne, reaching RMB 18,760 per tonne, followed by the decline of RMB 70 per tonne in Foshan and RMB 40 per tonne in Shenyang to close at RMB 18,740 per tonne and RMB 18,780 per tonne, respectively. The price in Tianjin and Linyi has decreased by RMB 60 per tonne to settle at RMB 18,810 per tonne.

Other prices:

China’s domestic bauxite price has remained unchanged for more than two weeks, standing at RMB 640 per tonne. The alumina price has also remained stable from the previous week except for the price in Guagxi, which has increased by RMB 5 per tonne to close at RMB 3,945 per tonne, with average prices to range between RMB 3,920-3,970 per tonne.

Aluminium alloy ingot prices:

Among aluminium alloy prices, aluminium alloy (A356) price has witnessed an upsurge of RMB 100 per tonne to stand at RMB 19,200 per tonne, with average prices to range between RMB 19,000 per tonne and RMB 19,400 per tonne. In contract, aluminium alloy (A360) price has dwindled by RMB 50 per tonne to part at RMB 19500 per tonne. The average prices are estimated to hover around RMB 19,400-19,600 per tonne.

Market analysis:

The current decline in aluminium ingot prices depicts a complex interplay between economic factors and sector-specific dynamics. While the stability of raw material prices provide some relief, the overall market sentiment remains cautious.