On Friday August 2, the market for aluminium ingot alloy showcased a notable trend. The market for aluminium ingot experienced a major adjustment across various regions of China. According to the Shanghai Metal Market (SMM), the price of A00 aluminium ingot closed at RMB 19,000 per tonne, reflecting a dip of RMB 170 per tonne following a RMB 200 per tonne increase the day before. This decline is attributed to weaker market sentiment and increased inventories.
The average A00 aluminium ingot price at the starting of the week was around RMB 19,200 per tonne which showed a downward trend in the end of the week by RMB 200 per tonne.
The average price of low-carbon aluminium has decreased by RMB 170 per tonne, bringing it to RMB 19,858 per tonne. Similarly, the prices of high-purity aluminium (99.99%) and high-purity aluminium (99.996%) have fallen by RMB 200 per tonne, now averaging RMB 26,250 per tonne and RMB 27,250 per tonne, respectively. These prices are expected to fluctuate between RMB 25,800 per tonne to RMB 26,700 per tonne for the 99.99% purity and RMB 26,800 to RMB 27,700 per tonne for the 99.996% purity.
Region-wise analysis:
The average price of aluminium ingot decreased across all the regions of China with the highest in Hangzhou region by RMB 170 per tonne to clock at RMB 19,000 per tonne. The price is down by RMB 160 per tonne in Gongyi, Foshan, Wuxi and Chongqing to peg at RMB 18,880 per tonne, RMB 18,920 per tonne, RMB 19,000 per tonne and RMB 18,960 per tonne respectively. Regions like Shenyang, Tianjin and Linyi encountered a plunge in price by RMB 150 per tonne, RMB 100 per tonne and RMB 120 per tonne, settling at RMB 18,970 per tonne, RMB 19,050 per tonne and RMB 19,030 per tonne.
Other prices:
The price of raw materials like imported bauxite has increased very minorly by US$ 0.02 per tonne, but in all the provinces, the price remains unchanged. Australian bauxite price is up by US$ 1.5 per tonne. The price of alumina price has seen no change and remains relatively stable.
Aluminium alloy ingot prices:
Aluminium alloy prices have also seen a reduction. The price of aluminium alloy (A360) has fallen by RMB 250 per tonne, settling at RMB 19,700 per tonne, ranging between RMB 19,600 per tonne and RMB 19,800 per tonne. The prices of aluminium alloy (ADC12) and alloy (A380) have remained stable from the previous day across all regions, holding steady at RMB 19600 per tonne and RMB 20,600 per tonne, respectively. Meanwhile, the price of aluminium alloy (A356) has decreased by RMB 200 per tonne, averaging RMB 19,450 per tonne, ranging between RMB 19,300 per tonne and RMB 19,600 per tonne.
Market analysis:
The aluminium market on 2nd August reflects a downturn, with significant price reductions in aluminium ingot and alloy, which indicates cooling demand in the market.
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