According to Shanghai Metal Market (SMM) survey, China’s A00 aluminium ingot price has descended by RMB 190 per tonne to clock at RMB 19,010 per tonne on July 25, continuing the bearish trend observed over the past weeks. This reduction brings the price to a level substantially lower than earlier in the month by RMB 1,190 per tonne from RMB 20,200 per tonne. The average price may range between RMB 18,990 per tonne and RMB 19,030 per tonne, with spot contract to be traded at a discount price of RMB 50 per tonne.
However, if compared with the same period of the previous year, China’s domestic A00 aluminium ingot price has edged a surge of RMB 670 per tonne from RMB 18,340 per tonne.
Region-wise analysis
The price has declined across all regions by a large amount in Gongyi and Foshan by about down RMB 200 per tonne, averaging below RMB 19,000 per tonne. According to SMM, the price in Gongyi has come in at RMB 18,890 and the price in Foshan has settled at RMB 18,900 per tonne. In Wuxi, Hangzhou Tianjin, Linyi and Shenyang, the price has unanimously plummeted by RMB 190 per tonne to peg at RMB 19,010 per tonne, RMB 19,010 per tonne, RMB 19,060 per tonne, RMB 19,060 per tonne, and RMB 18,980 per tonne, respectively. In Chongqing, the price has decreased by RMB 180 per tonne to stand at RMB 19,000 per tonne.
Other prices
China’s domestic low-carbon aluminium price has also witnessed a downfall by RMB 173 per tonne to stand at RMB 19,846 per tonne. The price of high-purity aluminium (99.99%) has nosedived by RMB 200 per tonne to stand at RMB 26,300 per tonne as of July 25.
The prices of raw materials like bauxite have remained the same for over two weeks at RMB 640 per tonne. The average spot alumina price has neither recorded any change from RMB 3,905 per tonne.
Aluminium alloy price
Aluminium alloy (ADC12) price is down by RMB 100 per tonne, standing at RMB 19,500 per tonne, with average prices to range between RMB 19,400 per tonne and RMB 19,600 per tonne. Aluminium alloy (A380) price has also dwindled by RMB 100 per tonne to stand at RMB 20,500 per tonne. The average prices are estimated to range between RMB 20,400 per tonne and RMB 20,600 per tonne.
On the other hand, aluminium alloy (A356) price and aluminium alloy (A360) price have recorded higher downfall of RMB 200 per tonne to reach RMB 19,450 per tonne and RMB 19,800 per tonne, respectively.
Market analysis
This decline is attributed to the increased domestic production and sluggish demand. Industry analysts suggest that the market might continue to see volatility as demand and economic conditions show no sign of improvement shortly.
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