
After seven consecutive months of decline, Weiqiao Group has raised its purchasing prices for pre-baked anode by RMB 180 per tonne for August. The price is now standing at RMB 3280 per tonne in cash and RMB 3135 per tonne on acceptance, according to the latest update by Shanghai Metals Market.

SMM believes that this upward adjustment indicates the beginning of a new round of restocking for the winter. Also, this negotiation further occurred as many producers were not accepting an earlier downward adjustment of RMB 150 per tonne because of the losses in the market for pre-baked anode.
According to another update by SMM, East Hope Group in China has commissioned part of its primary aluminium project in Guyang county, Baotou city in Inner Mongolia on August 1. The project includes capacity of 500,000 tonnes, of which 390,000 tonnes has started.
On Wednesday, August 1, traders in the east China showed keen interest in purchasing primary aluminium because of which spot discounts narrowed down, SMM research found.
Discounts stood at RMB 70-50 per tonne against the SHFE August contract, down from RMB 80-70 per tonne in the previous day. Transactions in Shanghai, Wuxi and Hangzhou were mostly heard at RMB 14350 per tonne to RMB 14360 per tonne.
Meanwhile sellers in the south remained keen to offload cargoes while major traders continued to make purchases. This led to a brisk trading activity across the market. Most transactions were done at RMB 14520 per tonne to RMB 14530 per tonne in Guangdong, with Guangdong-Shanghai price spread higher at RMB 170 per tonne.
As on August 2, the average A00 aluminium ingot spot price shrank from RMB 14350 per tonne to RMB 14250 per tonne. The average prices today are expected to range between RMB 14230 per tonne and RMB 14270 per tonne, with spot discounts to settle at RMB 80 per tonne to RMB 40 per tonne.

As far as the downstream aluminium sector is concerned, processing fees for aluminium billet held steady in Guangdong while trading thinned on tepid downstream orders. Fees for 90 mm were at RMB 480-520 per tonne, while fees for 120 mm and 150/178 mm were at RMB 460-500 per tonne and RMB 380-420 per tonne, respectively.
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