China’s A00 aluminium price surges by RMB 220/t today amidst the ongoing M-o-M downtrend

The latest data from the Shanghai Metal Market (SMM) shows a mixed performance in the aluminium market, with the price of A00 aluminium ingot seeing a significant increase today. As of August 16, the price of A00 aluminium ingot has skyrocketed by RMB 220 per tonne, or 1.15 per cent, from the previous day, reaching RMB 19,230 per tonne. This marks a recovery after two consecutive days of decline.

Today's average prices are expected to range between RMB 19,210 and RMB 19,250 per tonne. The spot contracts are likely to be traded at a discount price of RMB 90 per tonne to RMB 30 per tonne, with an average discount of RMB 70 per tonne. This price increase contributes to a week-over-week gain of RMB 220 per tonne, rising from RMB 19,010 per tonne and closing the week on a positive note. However, on a month-over-month basis, the price is still on a downward trend, with a decline of RMB 560 per tonne from RMB 19,790 per tonne as of July 16

Additionally, China's domestic low-carbon aluminium price has shot up by RMB 209 per tonne, reaching an average price of RMB 20,096 per tonne. The prices for high-purity aluminium (99.99%) and high purity aluminium (99.996%) have also increased by RMB 200 per tonne, now standing at RMB 26,400 per tonne and RMB 27,400 per tonne, respectively. The high-purity aluminium prices range between RMB 26,000 per tonne to RMB 26,800 per tonne for 99.99% purity and RMB 27,000 per tonne to RMB 27,800 per tonne for 99.996% purity.

Region-wise analysis:

The A00 aluminium ingot price has surged in most regions. Among major Chinese provinces, Gongyi, Foshan, and Wuxi have seen increases of RMB 210 per tonne. The prices have settled at RMB 19,140 per tonne in Gongyi, RMB 19,150 per tonne in Foshan and RMB 19,220 per tonne in Wuxi.

On the same day, the price in Chongqing surged by RMB 180 per tonne to settle at RMB 19,180 per tonne. In regions like Hangzhou and Shenyang, the domestic aluminium ingot prices have increased by RMB 170 per tonne to clock at RMB 19,210 per tonne and RMB 19,180 per tonne. In Tian and Linyi, the price has escalated by RMB 120 per tonne and RMB 160 per tonne to peg at RMB 19,180 per tonne and RMB 19,200 per tonne, respectively.

Other prices:

The price of raw materials like domestic bauxite and alumina remains stable from the previous price at RMB 640 per tonne for domestic bauxite and RMB 3,904 per tonne for alumina. Only the Australian alumina FOB price is up by US$ 9 per tonne to stand at US$ 512 per tonne. The main reason could be the market for bauxite and alumina have no increase or decrease in demand from end users leading to this stability in price.

Aluminium alloy ingot prices:

On August 16, the price of aluminium alloy (A356) and aluminium alloy (A380) increased by RMB 200 per tonne, reaching RMB 19,650 per tonne and RMB 20,950 per tonne, respectively. The average prices are expected to range between RMB 19,500 to RMB 19,800 per tonne for A356 and RMB 20,800 per tonne to RMB 21,100 per tonne for A380. Aluminium alloy ingot (A360) price has seen highest increase of RMB 250 per tonne to clock at RMB 19950 per tonne, fluctuating between RMB 19,850 per tonne to RMB 20,050 per tonne.

In contrast, the prices for aluminium alloys (ADC12) prices have climbed up by RMB 150 per tonne in all the regions, settling at 19,900 per tonne, except for northeast region where the price has increased by RMB 100 per tonne to stand at 19,700 per tonne.