Stocks of 6063 aluminium billet across five major consumption areas in China recorded a fall yesterday, September 20, by 4,900 tonnes from a week earlier to stand at 116,200 tonnes, Shanghai Metals Market found. The decline came after five consecutive weeks of increases.
In Foshan and Guangdong, the aluminium billet inventory stood at 77,800 tonnes while in Wuxi and Jiangsu, the inventory was seen at 12,300 tonnes. For more details, refer to the chart below:
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In this background, the aluminium alloys (ADC12) spot price climbed by RMB 50 per tonne to stand at RMB 15650 per tonne, as of September 21, 2018. Aluminium alloy (A356) and aluminium alloy (A380) also recorded a surge, by RMB 100 and RMB 50 per tonne respectively, to stand at RMB 15300 per tonne and RMB 16400 per tonne.
This rise in alloy prices could also be attributable to the increasing prices of primary aluminium ingot for the past three days in a row. Primary Ingots are used in producing an alloy which is then cast into extrusion billet or rolling slab using a semi-continuous process known as direct chill (DC).
Today, the A00 aluminium ingot spot price extended its surge further by RMB 140 per tonne to stand at RMB 14690 per tonne, in contrast to 14550 per tonne on 20th of September. The average prices today are expected to range between RMB 14670 per tonne and RMB 14710 per tonne, with spot discounts to settle at RMB 50 per tonne to RMB 10 per tonne.
In the east, the ingot price rose by RMB 110 per tonne to RMB 14650 while in the south and north, the prices climbed RMB 130 per tonne and RMB 135 per tonne to stand at RMB 14830 per tonne and RMB 14700 per tonne, respectively.
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