Alumina price declines by RMB15/t; A00 aluminium ingot price increases on lowered inventories

Followed by a restraint at RMB2,457 per tonne on August 2, the average spot price of alumina has begun the week with a drop to RMB 2,442 per tonne, as of Monday, August 5, found Shanghai Metals Market.  Quarter-on-quarter, the price thus, stands below by RMB 336 per tonne, and on month the price hovers lower by RMB 281 per tonne.

In the east and central, the average alumina price has dwindled by RMB 20 per tonne, while in the south and north by RMB 15 per tonne and RMB 10 per tonne.

However, against the background of alumina spot price decline in China, the A00 aluminium ingot price has registered a growth of RMB 10 per tonne to stand at RMB 13,840 per tonne. The average prices are expected to range between RMB 13,820 per tonne and RMB 13,860 per tonne, while the spot contract to be traded at a premium price of RMB 40 per tonne.

Limited shipment arrivals and decline in social inventories of primary aluminium, as of today, could be a reason for the hike in aluminium ingot price. Shanghai Metals Market learned that the stocks of primary aluminium across eight major consumption areas, including SHFE warrants, have recorded decrease by RMB 2,000 per tonnes over the weekend to stand at 1.038 million tonnes, as of August 5.

In Wuxi, Jiangsu; Hangzhou, Zhejiang; and Linyi, Shandong, the inventories have dropped by 2,000 tonnes, 5,000 tonnes, and 1,000 tonnes respectively to stand at 303,000 tonnes, 57,000 tonnes, and 15,000 tonnes. In other markets, the inventories have either increased or remained the same.

The chart below indicates the current status of primary aluminium inventories across the Chinese markets.

Among all the major markets, Tianjin has seen the highest rise today in aluminium ingot price by RMB 50 per tonne to RMB 13,860 per tonne, followed by Linyi and Wuxi, where the price increased by RMB 20 per tonne to RMB 13,850 per tonne.