The SMM aluminium market has witnessed an increase in prices today, with the A00 aluminium ingot price soaring by RMB 100 per tonne to rest at RMB 19,690 per tonne, with the average prices ranging between RMB 19,670 per tonne and RMB 19,710 per tonne. This week seems optimistic in comparison with last week. The average price has increased by RMB 680 per tonne in just one week from RMB 19,010 per tonne.
If we analyse the aluminium price on Aug 19, this Monday, we can see a growth of RMB 230 per tonne from RMB 19,460 per tonne recorded that day.
The price of low-carbon aluminium has surged by RMB 71 per tonne to peg at RMB 20,511 per tonne. Again, High purity aluminium (99.99%) price and high-purity aluminium (99.996%) prices in China have both swollen by RMB 100 per tonne to park at RMB 26,800 per tonne and RMB 27,800 per tonne. The average price is fluctuating between RMB 26400 per tonne to RMB 27,200 per tonne for 99.99% purity and RMB 27,400 per tonne to RMB 28,200 per tonne for 99.996% purity.
Region-wise analysis:
The eight central provinces have all shown heightening aluminium prices, with the highest spike of RMB 100 per tonne noticed in Gongyi, Foshan, Wuxi, Hangzhou, Chongqing and Linyi. Bringing the prices at MB 19,600 per tonne in Gongyi, RMB 19,590 per tonne in Foshan, RMB 19,680 per tonne in Wuxi, RMB 19,690 per tonne in Hangzhou, RMB 19,660 per tonne in Chongqing and RMB 19,640 per tonne in Linyi. Other than that, in Shenyang and Tianjin, the aluminium prices levitated by RMB 90 per tonne and RMB 70 per tonne to officially close at RMB 19,610 per tonne for both provinces.
Other prices:
The imported and domestic bauxite and alumina prices remain the same despite the ongoing upward trend in aluminium prices. The imported and domestic bauxite price stands at US$ 76.11 per tonne and RMB 640 per tonne, respectively, where the aluminium price stuck at 3,907 per tonne.
Aluminium alloy ingot prices:
The aluminium alloys ingot (ADC12) price has escalated in all the regions with RMB 50 per tonne gain in the east and south regions and RMB 100 per tonne gain in the southwest and northeast regions, clocking at RMB 20,150 per tonne in the east and south regions and RMB 20,200 per tonne in the southwest and northeast region.
The aluminium alloy (A356) price and aluminium alloy (A360) price have both collected RMB 100 per tonne to settle at RMB 20,150 per tonne and RMB 20,400 per tonne, respectively. Alloy (A380) price has increased by RMB 50 per tonne to settle at RMB 21,200 per tonne with an average of RMB 21,200 per tonne.
Market analysis:
The ongoing increase in prices may eventually reduce consumption, particularly if downstream buyers keep postponing purchases, expecting a price drop. This situation threatens market stability, as a prolonged imbalance between supply and demand could result in heightened volatility.
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