
Shanghai Metals Market found Weiqiao Group planned to cut its pre-baked anode purchasing price by RMB 150 per tonne for August. But domestic producers on Wednesday, July 25, opposed the decision because of the industry’s loss since the past two months.
SMM expects company to adjust its cut to RMB 0-50 per tonne from July level, which is why the final purchasing price is still under negotiations.
{alcircleadd}As of July 2, Weiqiao Group lowered the prices for seven straight months on the face of oversupply in the market. The price for this month now stands at RMB 3100 per tonne in cash and RMB 3135 on acceptance, RMB 100 per tonne down from June.
As far as the pre-baked anode average spot price is concerned, it has been hovering at RMB 3135 per tonne since 3rd of July, after dropping from RMB 3235 per tonne that continued over a month from June 1 to July 2, according to SMM.
Other input costs such as aluminium fluoride and cryolite also displayed no change after July 5 and July 6, respectively. While the former is hovering at RMB 9,700 per tonne, the latter is standing at RMB 600 per tonne.
This indicates that although the average prices of aluminium fluoride, cryuolite and also pre-baked anode registered not much change in the market over a month but overall appeared to remain steady.
The average alumina spot price stood exception this month recording a continued hike right from RMB 2726 per tonne, as on July 2, to RMB 2956 per tonne on July 27.
Even all the major Chinese markets including the east, central, north and south witnessed a steady growth throughout the month. While the prices in the east and central ranged between RMB 2740-2975 per tonne and RMB 2765-2965 per tonne over the month until now, the prices in the north and south rallied between RMB 2700-2965 per tonne and RMB 2685-2900 per tonne, respectively. This shows the east market saw the maximum range of price this month.
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