According to the Shanghai Metals Market, China’s domestic alumina market has resumed after a week-long National Day holiday with a price surge of RMB 16 per tonne to stand at RMB 4,108 per tonne as of Tuesday, October 8. With the latest rise, China’s domestic alumina price has recorded a month-on-month hike of 4.32 per cent from RMB 3,938 per tonne, and year-on-year, the price has skyrocketed by 38.55 per cent from RMB 2,965 per tonne.
The price hike has unanimously touched upon all the major alumina consumption areas in China, resulting in prices above RMB 4,000 per tonne. In Shandong and Henan, the domestic alumina prices have amounted to RMB 4,070 per tonne and RMB 4,100 per tonne, experiencing an increase of RMB 20 per tonne. In Shanxi and Guizhou, the prices have heightened by RMB 15 per tonne and RMB 10 per tonne to settle at RMB 4,175 per tonne and RMB 4,085 per tonne, respectively.
Other raw material prices
Among other input costs, China’s imported bauxite price has dipped by US$0.02 per tonne to stand at US$77.49 per tonne. However, the domestic bauxite price has remained restrained at RMB 640 per tonne, with average prices hovering around RMB 620-660 per tonne.
Aluminium powder price has inched up by RMB 0.2 per kg to amount to RMB 23.1 per kg, with average prices ranging between RMB 23-23.2 per kg.
A00 aluminium ingot price
China’s domestic A00 aluminium ingot price has also significantly expanded by RMB 220 per tonne to stand at RMB 20,600 per tonne on October 8, 2024. The average prices are expected to range between RMB 20,580 per tonne and RMB 20,620 per tonne, with a spot contract to be traded at a discount price of RMB 70-30 per tonne.
Month-on-month, the price today stands at a 7.52 per cent high compared to RMB 19,160 per tonne, while the price on a year-on-year basis has edged an increase of RMB 5.16 per tonne from RMB 19,590 per tonne.
Among the major Chinese provinces, Linyi has seen the highest growth of RMB 250 per tonne to RMB 20,630 per tonne, followed by an upsurge of RMB 230 per tonne in Foshan to RMB 20,420 per tonne. In Wuxi and Hangzhou, A00 aluminium ingot price has risen by RMB 220 per tonne to RMB 20,600 per tonne, while the price in Chongqing and Gongyi has escalated by RMB 210 per tonne and RMB 190 per tonne to peg at RMB 20,540 per tonne and RMB 20,570 per tonne.
Market analysis
Before the National Day holiday, the Chinese economy saw a boost due to the stimulus package, with Chinese stocks peaking at the highest in a single day in the past sixteen years and domestic A-shares registering their highest-ever turnover. The CSI300 blue-chip index was up by nearly 30 per cent from the February trough, heading to a bullish market that persists, propelling the growth of aluminium prices.
Responses
