UK and US sanctions on Russian metal propel A00 aluminium ingot prices to weekend surge in China

According to the Shanghai Metals Market data on Monday, April 15, the domestic A00 aluminium ingot price has grown for the fourth consecutive day by RMB 190 per tonne to reach RMB 20,750 per tonne, the highest in more than two years. The average prices are estimated to range between RMB 20,730 per tonne and RMB 20,770 per tonne, with spot contract to be traded at a discount price of RMB 80-40 per tonne.

China’s A00 aluminium ingot price has been rising since March 28, albeit a fall for an intermittent day. Over a month, the price has soared by RMB 1,570 per tonne, and over a week, it has surged by RMB 640 per tonne.

In tandem with the aluminium ingot price surge, aluminium alloy (A356) price has climbed up by RMB 200 per tonne over the weekend to stand at RMB 21,350 per tonne on April 15, marking the fourth consecutive day of hike and recorded a week-on-week increase of RMB 650 per tonne from RMB 20,700 per tonne. The average prices are expected to range between RMB 21,200 per tonne and RMB 21,500 per tonne.

Among primary aluminium input costs, aluminium powder price has grown by RMB 0.20 per kg to stand at RMB 23.2 per kg, with average prices likely to range between RMB 23.1-23.3 per kg.

The aluminium prices have jumped to multi-month highs on Monday following fresh sanctions by the United States and the United Kingdom targeting Russian metals. On Friday, Washington and London prohibited metal-trading exchanges from accepting new aluminium. The sanctions aim to restrict revenues for Russia from the export of metal produced by companies such as Rusal and Nornickel.