
It will take time to reflect results of the implementation of production cut in the aluminium ingots inventory in the Chinese market. This is putting pressure in the aluminium prices by keeping it low.
A00 ingot prices in China drop across two days after the winter capacity cut started on November 15. As updated by Shanghai Metals Market, average A00 aluminium ingot price has dropped RMB 130/t to RMB 15,230/t on November 17 from RMB 15,360/t yesterday. The price is expected to range within RMB 15210 – RMB 15250 per tonne.
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Chen Xuesen, vice director of strategic development Dept. of China Aluminum has recently said in a seminar in Fuzhou that Chinese government is researching on detailed measures to continue with aluminium output cut. Since China’s domestic aluminium demand is projected to be around 42 million tonnes in 2020, the government is looking at 44 million tonnes as the approved primary capacity for the current year.
The drop in aluminium A00 Aluminum prices have continued in all other individual markets in China. A00 ingot prices have registered a drop from RMB 65/t to RMB 130/t across all markets. In the spot market aluminium is trading at a discount of RMB 50-10 /tonne. The below table shows the price drop in various markets:

In the SHFE market, bears in nonferrous section will keep cutting upward impetus of aluminium. During night trading, SHFE Aluminium is expected to return to struggle for 5-day moving average.
Spot alumina prices also dropped across all major markets in China today. Chalco alumina price remains unchanged and so is the imported alumina price.
Wen Xianjun, Vice director of China Nonferrous Metals Industry Association (CNIA) says, the downstream aluminium industry is concerned about the rising price of primary aluminium. It is calculated than during first ten months of 2017, domestic average price of primary aluminium crossed RMB 15,000/t and reached RMB 16,000/t level in November. This makes the downstream industry less profitable. They will continue with supply side reforms and at the same time promote downstream applications of aluminium.
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