Volatility in China’s A00 aluminium market initiated the week with a dip in price by RMB170/t

As of 5th August, the Shanghai Metal Market (SMM) China’s A00 aluminium ingot price initiated the week with an average price of RMB 18,830 per tonne, down by RMB 170 per tonne from the previous day. The average price is likely to fluctuate between RMB 18,810 per tonne and RMB 18,850 per tonne. The spot contract may be traded at a discount price of RMB 70 per tonne to RMB 30 per tonne, with an average of RMB 50 per tonne.

Low-carbon aluminium has also shrunk by RMB 171 per tonne, with an average price of RMB 19,687 per tonne. The average price of high-purity aluminium (99.99%) and (99.996%) has declined by RMB 150 per tonne to reach RMB 26,100 per tonne and RMB 27,100 per tonne, ranging between RMB 25,700 per tonne and RMB 26,500 per tonne and RMB 26,700 per tonne to RMB 27,500 per tonne.

Region-wise analysis:

China’s A00 aluminium ingot price has dwindled across all the regions by a large amount. Foshan, Wuxi and Tianjin regions have seen the most declines in price of RMB 170 per tonne to clock at RMB 18,750 per tonne, RMB 18,830 per tonne and RMB 18,880 per tonne. The domestic aluminium ingot price has dipped by RMB 150 per tonne in Gongyi, Hangzhou and Linyi to settle at RMB 18,730 per tonne, RMB 18,850 per tonne and RMB 18,880 per tonne. In Chongqing and Shenyang, the prices have settled at RMB 18,830 per tonne and RMB 18,850 per tonne, slumping by RMB 130 per tonne and RMB 120 per tonne.

Other prices:

The price of raw materials like bauxite remains the same, US$ 75.21 per tonne at the start of the week across all the regions. The alumina price remains the same from the previous day, which is RMB 3,904 per tonne. Exceptionally, the Australian alumina FOB price has risen by US$ 5 per tonne to US$ 485 per tonne.

Aluminium alloy ingot:

The average price of Aluminium alloys ingot (ADC12) has decreased by RMB 100 per tonne across all regions. The average price is now RMB 19,500 per tonne in the East and South regions, RMB 19,700 per tonne in the Southwest region, and RMB 19,400 per tonne in the Northeast region. Additionally, the price of aluminium alloy (A356) has dropped by RMB 150 per tonne, now at RMB 19,300 per tonne, fluctuating between RMB 19,100 and RMB 19,500 per tonne. Similarly, aluminium alloy (A360) decreased by RMB 150 per tonne, bringing its price to RMB 19,550 per tonne, ranging between RMB 19,450 and RMB 19,650 per tonne. The price of A380 aluminium alloy has also declined by RMB 100 per tonne, now priced at RMB 20,500 per tonne, hovering between RMB 20,400 and RMB 20,600 per tonne.

Market analysis:

The stability in raw material prices indicates that the current price decline in aluminium ingots is not due to increased production costs but market conditions. Factors such as global economic uncertainties, reduced demand, and fluctuating inventory levels likely contribute to the drop in ingot prices. However, the unchanged raw material costs could indicate a potential for price stabilization or recovery in the future.