Chinese alumina price begins 2024 with a new high since a year standing above RMB3150/t; A00 aluminium ingot price resists growth

China’s average alumina spot price has continued to grow over the New Year weekend to kickstart 2024 at RMB 3,154 per tonne on Tuesday, January 2. According to the Shanghai Metals Market, the price has surged by RMB 35 per tonne since Friday, marking a week-on-week hike of RMB 128 per tonne from RMB 3,026 per tonne.

On a year-on-year basis, China’s alumina price has soared by RMB 227 per tonne compared to RMB 2,927 per tonne on January 3, 2023. The current price is the highest in more than a year, driven by the enthusiastic purchase of the ore in light of possible production cuts and supply shortages due to disrupted transportation of bauxite from Guinea caused by a deadly explosion at a fuel depot, destroying 13 out of 18 warehouses in the oil storage area.

Alumina prices across Chinese provinces

In Henan and Shanxi, alumina spot price has skyrocketed by RMB 50 per tonne to begin the year 2024 at RMB 3,180 per tonne and RMB 3,215 per tonne, respectively. The average prices are estimated to range between RMB 3,110-3,250 per tonne and RMB 3,180-3,250 per tonne.

In Guizhou, Guangxi, and Shandong, alumina price has increased by RMB 25 per tonne, RMB 20 per tonne, and RMB 15 per tonne to stand at RMB 3,115 per tonne, RMB 3,130 per tonne, and RMB 3,065 per tonne, respectively.

 A00 aluminium ingot price

Despite the incessant hike in China’s alumina spot price, A00 aluminium ingot price has shown resistance to growth since December 29. After remaining restrained on the last day, the ingot price has shrunk by RMB 90 per tonne over the weekend to begin 2024 at RMB 19,480 per tonne on January 2. The average prices are expected to range between RMB 19,460 per tonne and RMB 19,500 per tonne, with a spot contract to be traded at a discount price of RMB 30 per tonne and a premium price of RMB 10 per tonne.

However, on a week-on-week basis, the price is still up by 1.46 per cent from RMB 19,200 per tonne, and on a year-on-year calculation, it is 4.39 per cent higher than RMB 18,660 per tonne.

Aluminium ingot price across Chinese provinces

In Wuxi and Hangzhou, A00 aluminium ingot price has plunged by RMB 120 per tonne over the weekend to stand at RMB 19,480 per tonne as of January 2. The ingot price in Chongqing and Tianjin has come in at RMB 19,450 per tonne by losing RMB 120 per tonne too.

In Shenyang, Foshan, and Linyi, A00 aluminium ingot price has decreased by RMB 80 per tonne, RMB 70 per tonne, and RMB 60 per tonne, respectively, to open the week at RMB 19,430 per tonne, RMB 19,440 per tonne, and RMB 19,480 per tonne.

Aluminium alloys prices

Aluminium alloys prices have also shied away from recording growth on January 2, 2024. While aluminium alloy (A356) price has declined, aluminium alloys (ADC12) price and aluminium alloy (A380) price have remained restrained. According to the Shanghai Metals Market, aluminium alloy (A356) price has slipped off RMB 100 per tonne to stand at RMB 20,150 per tonne, with average prices estimated to range between RMB 20,000 per tonne and RMB 20,300 per tonne.