A00 aluminium ingot price continued upward trend over the week; Alumina prices follow suit

A00 aluminium ingot price continued to remain on an upward trend throughout the week. The week started higher at RMB14310 per tonne on Monday, 02 September 2019, up RMB20 per tonne from August 30. The price did not show any change on Thursday but ended the week higher at RMB14420 per tonne on Friday, 06 September 2019.

Inventories of primary aluminium stocks in China fell this week for a second straight week, as most regions saw greater deliveries. As of Monday September 2, Shanghai Metals Market data showed that social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, stood at 1.016 million tonnes, down 17,000 tonnes from Thursday August 29. Primary aluminium inventories continued to decline to 1.006 million tonnes as of Thursday September 5, a drop of 27,000 tonnes from a week ago.

As far as raw material is concerned, prebaked anode price in Southwest China market was down by RMB 35 per tonne as of Tuesday, 03 September 2019. Prebaked anode price ranged at RMB 3380-3650 per tonne; the average price stood at RMB 3515 per tonne, from its previous price of RMB 3550 per tonne. The average price of prebaked anode remains flat in other major China markets.

On Friday, 06 September 2019, the average prices of prebaked anode in East China and Central markets were down by RMB 70 per tonne each to stand at RMB3042.50 per tonne and RMB 3102.50 per tonne.

Shandong Weiqiao Group, one of the top aluminium producers in China, lowered the benchmark purchasing price of prebaked anode for the third month in a row. For September 2019, the company reduced the benchmark purchasing price by RMB 70 per tonne from August to RMB 2,925 per tonne in cash.

The average spot price of alumina showed an upward movement over the past week. Alumina price started the week higher at RMB2528 per tonne on Monday, 02 September, up RMB 8 per tonne from August 30 and ended at RMB RMB2547 per tonne on Friday.