China’s aluminium trading market, often seen as a bellwether for global trends, exhibited subtle yet telling shifts as per the latest Shanghai Metals Market (SMM) pricing report released on Thursday. Alumina and aluminium prices showed mixed dynamics, reflecting evolving supply-demand balances and regional variances. With slight declines in some areas and stability in others, the data points to a steady but cautious market.
Alumina pricing
The latest Shanghai Metals Market (SMM) pricing report as on Thursday shows trends in China's alumina market, with regional price stability except for slight declines in some areas. The average price for alumina on December 26 in China decreased marginally by RMB 6 per tonne, settling at RMB 5,725 per tonne. This minor drop reflects subtle shifts in supply-demand dynamics in the domestic market. Noticing the SMM provincial pricing list, it is seen that Shandong maintained stability at an average price of RMB 5,735 per tonne, with no change reported. Whereas, Henan experienced a slight decline, dropping by RMB 10 per tonne to an average of RMB 5,690 per tonne. Similarly, Shanxi's average price fell by 10 bucks, landing at RMB 5,740 tonne. Guizhou and Guangxi held steady at RMB 5,740 per tonne, indicating consistency in southern regions. Higher prices were observed in SMM-listed port regions of Lianyungang and Bayuquan, averaging RMB 6,050 per tonne, even without any further changes from the previous report.
A00 aluminium ingot pricing
The Shanghai Metals Market (SMM) report for December 26, 2024, revealed a mixed performance in the aluminium market, with slight price adjustments across regions and a rise in discounts. While some areas experienced minor declines, others showed signs of increased demand, painting a nuanced picture of the domestic and international aluminium landscape.
The SMM A00 Aluminium Ingot averaged RMB 19,820 per tonne, indexing a slight decline of RMB 10 per tonne from the previous report. Regional pricing varied across the country, with Gongyi witnessing a marginal decrease of RMB 10 per tonne to settle at RMB 19,750 per tonne, while Foshan saw an increase of RMB 40 per tonne to reach RMB 20,020 per tonne, the highest among the listed regions. Prices in Wuxi dropped by RMB 40 ending at RMB 19,800 per tonne, whereas Hangzhou, Shenyang, and Tianjin remained stable at RMB 19,850 per tonne. Today, Linyi experienced a slight decrease of 10 bucks, bringing its average price to RMB 19,870 per tonne, and Chongqing registered a modest increase of RMB 10 per tonne to reach RMB 19,860 per tonne.
The SMM A00 Aluminium discount narrowed to an average of RMB 30 per tonne ranging between a discount of RMB 10 to RMB 50, a slight improvement of RMB 10 to the previous session’s pricing.
Other pricing
Low-carbon aluminium prices continued to rise, with the average reaching RMB 21,039 per tonne, an increase of RMB 35 per tonne to prior closing price, bringing forth growing demand for environmentally sustainable materials. High-purity aluminium prices, both for 99.99% and 99.996% purity grades, remained steady at RMB 26,900 per tonne and RMB 27,900 per tonne, respectively.
Overall, the Chinese aluminium market demonstrates regional and sectoral variation. The growing focus on low-carbon aluminium reflects the increasing prioritisation of sustainable practices within the industry. As the market remains dynamic, participants are advised to monitor regional trends and evolving global demand to capitalise on emerging opportunities.
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