China’s alumina spot price drops for the fourth day in a row, causing no hindrance to A00 aluminium ingot price growth

According to the Shanghai Metals Market survey, China’s average alumina spot price has dipped by RMB 1 per tonne on Thursday, March 14, marking the fourth consecutive day of fall. Thus, the price stands at RMB 3,321 per tonne, down by RMB 11 per tonne or 0.33 per cent week-on-week compared to RMB 3,332 per tonne.

In Shanxi, the alumina spot price has decreased by RMB 5 per tonne to RMB 3,315 per tonne, which on a week-on-week basis is down by RMB 30 per tonne or 0.90 per cent from RMB 3,345 per tonne. In other provinces like Shandong, Henan, Guizhou, and Guangxi, the alumina spot price has remained restrained on March 14.

A00 aluminium ingot price

However, amid the incessant downfall in the alumina spot price, A00 aluminium ingot price has been rising for the past three days. According to SMM, on Thursday, March 14, A00 aluminium ingot price has ascended by RMB 110 per tonne to reach RMB 19,260 per tonne. The average prices are expected to range between RMB 19,240 per tonne and RMB 19,280 per tonne, with a spot contract to be traded at a discount price of RMB 10 per tonne and a premium price of RMB 30 per tonne.

The back-to-back growth in China’s A00 aluminium ingot price could be attributed to robust demand for the primary metal during this ongoing traditional peak season. In addition, weaker supply due to many smelters yet to resume operations is further pushing the ingot prices.

In Gongyi, the primary aluminium ingot price has elevated by RMB 110 per tonne to RMB 19,140 per tonne, followed by the increase of RMB 100 per tonne in Foshan and Wuxi to RMB 19,210 per tonne and RMB 19,250 per tonne, respectively. In Hangzhou, Shenyang, and Tianjin, A00 aluminium ingot price has built up by RMB 80 per tonne to clock at RMB 19,230 per tonne, RMB 19,180 per tonne, and RMB 19,210 per tonne.

The domestic low-carbon aluminium price has registered a hike too on March 14 by RMB 104 per tonne to settle at RMB 20,104 per tonne.

Aluminium alloy prices

Aluminium alloy prices have also increased in China on March 14. According to SMM, aluminium alloys (ADC12) price has gained RMB 100 per tonne to peg at RMB 20,300 per tonne, with average prices ranging between RMB 20,200 per tonne and RMB 20,400 per tonne.

The aluminium alloy (A380) price has displayed the same growth rate to reach RMB 21,300 per tonne, while the price of aluminium alloy (A356) has hiked by RMB 150 per tonne to rest at RMB 19,900 per tonne. The average prices of the latter are estimated to hover around RMB 19,700-20,100 per tonne.