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29 AUGUST 2018 AL CIRCLE

Weiqiao to increase September’s prebaked anode purchasing price; spot price in China remains the same

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to Shanghai Metals Market, Weiqiao Group on Tuesday, August 28, planned to increase its September’s purchasing price for pre-baked anode by RMB 220 per tonne but met opposition from domestic producers who demanded higher prices.

SMM expects Weiqiao to make a bigger upward adjustment by over RMB 300 per tonne from that in August. The final purchasing price is still under negotiation.

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On August 1, Weiqiao had raised prices by RMB 180 per tonne to RMB 3280 per tonne on cash and RMB 3315 per tonne on acceptance, after seven consecutive months of decline.

SMM believes this rebound in prices could be because of a new round of restocking for the 2018/19 winter from this month.

The average pre-baked anode spot price in China is, however, continuing at RMB 3315 per tonne with no sign of intermittent decline since the beginning of the month, SMM found. Earlier in August, the price remained at RMB 3135 per tonne after it dipped from RMB 3235 per tonne on the third day of the month. This shows that the pre-baked anode spot price has been displaying a steady sentiment over two months’ time, although remained lower from the corresponding period of the previous year.

SMM found the A00 aluminium ingot spot price also continues registering a growth again after a slight dip from RMB 14650 per tonne to RMB 14630 per tonne on August 28. As of today, August 29, the price is hovering at RMB 14820 per tonne after recording a hike by RMB 190 per tonne. The average prices are expected to range between RMB 14800 per tonne and RMB 14840 per tonne, with spot discounts to settle at RMB 90 to RMB 50 per tonne.

The reason behind this incessant growth of primary aluminium price could be the positive sentiment from input costs and tight supplies in the market due to production control for the upcoming winter-heating season.

According to the latest update from SMM, the northern city of Linfen in Shanxi province requires industrial pollutant sources in its central areas to cut or suspend production from the beginning of September. Yaodu district, Xiangfen county and Hongdong county, located in the centre of the city, are the major targets of this move. The effort is likely to be in effect until winter production cuts begin.

Tagged with:

Price China SMM

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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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