China’s A00 ingot price declines by RMB180/t, depicting weaker-than-expected demand trend

China’s domestic aluminium market has been facing a considerable fluctuation, resulting in a continuous decline in aluminium prices. According to the Shanghai Metal Market (SMM), A00 aluminium ingot price has registered a fall of RMB 180 per tonne over the weekend to stand at RMB 20,380 per tonne. This depicts a slowing US economy, evidenced by weaker-than-expected manufacturing and construction spending data.

The average price range of aluminum ingot is likely to be between RMB 20,360-20,400 per tonne, with a spot contract to be offered at a premium price range of RMB 0-40 per tonne.

The aluminium ingot price in Hang Zhou and Chong Qing region has decreased a maximum of RMB 200 per tonne, averaging at 20,380 and 20,300 per tonne, respectively.  Aluminum ingot price in Gong Yi, Wu Xi, Shen Yang and Lin Yi are at RMB 20,330, RMB 20,370, RMB 20360, and RMB 20430 per tonne, showing a decrease of RMP 190 per tonne. In Foshan region, the price has descended by RMB 180 per tonne to settle at RMB 20200 per tonne.

Raw material prices

The prices in bauxite market have remained unchanged for 3 consecutive days. However, in case of alumina, the price has decreases by RMB 2 per tonne to initiate the week at RMB 3,905 per tonne as of June 17. The alumina price has remained unchanged across all the regions, except for Shanxi, where the price has reduced by RMB 5 per tonne to RMB 3,910 per tonne. The average prices are estimated to range between RMB 3,880-3,940 per tonne.

Aluminium alloy ingot prices

The prices of various aluminium alloys have also experienced a reduction on June 17, 2024. The price of aluminium alloy (ADC12) across all regions like East, South, Southwest and Northeast has dwindled by RMB 100 per tonne, averaging at RMB 20,100 per tonne.

The price of aluminium alloy (A356) has fallen by RMB 200 per tonne to RMB 20,850 per tonne, with average prices to hover around RMB 20,700-21,000 per tonne. A380 and A360 aluminium alloy prices have seen a downfall of RMB 100 and 150 per tonne, settling at RMB 21,100 per tonne and 21,200 per tonne, respectively. The overall decline in alloy prices reflect reduced demand in the market.

Market analysis

The decline in aluminium ingot prices from the previous day shows a dynamic demand and changes in production costs. The aluminium alloy prices are mirroring this trend, indicating a broader downturn in the market.