Alumina price in Shanghai Metals Market towers over RMB 5k as week closes

As the week concludes, the price progress of alumina in the Shanghai Metals Market (SMM) continues to break records. The week started with the average alumina price of RMB 4900 per tonne and concluded with RMB 5,109 per tonne on November 1, 2024, with a total increase of close to 4.3 per cent within a week.

Image Source: Itaforte

According to SMM, the alumina price has had an approximately RMB 34 per tonne hike on an average M-o-M.

What has gained attention in the province's price is that of Lianyungang and Bayuquan, where for the last 10 days, alumina has gained between RMB per tonne to RMB per tonne after over 5 months of dormancy. Both regions saw an increase of RMB 200 per tonne on Friday, totalling RMB 4900 per tonne in the market. Calculating the other provincial prices, alumina surged to average RMB 5,100 per tonne (range RMB 5,050-5,150 per tonne) in Shandong and Henan, RMB 5,025 per tonne (range RMB 5,000-5,050 per tonne) in Guizhou and Guangxi and RMB 5,200 (range RMB 5,100-5,300 per tonne) in Shanxi.

The recent bull run of alumina's price in China is attributed to a number of factors, including bauxite import constraints and high demand for alumina due to increased smelter capacity et al.

On Friday, the A00 aluminium ingot remained similar to yesterday's (October 31) at RMB 20,760-20,800 per tonne (the average price is RMB 20,780 per tonne), which is RMB 40 deficient W-o-W.

The spot contract will be traded on Friday with a premium ranging from RMB 20 to RMB 60.

However, if the price from last year is considered, the price of A00 aluminium on September 25, 2023, was RMB 19,730 per tonne, evidently showing a 5.5 per cent Y-o-Y growth in the 2023-2024 trajectory.

The average A00 aluminium ingot pricing increased further in most provinces, with prices depicted as RMB 20,710 per tonne (+20) in Gongyi, RMB 20,640 per tonne (+20) in Foshan, RMB 20,740 per tonne (+20) in Chongqing, RMB 20,810 per tonne (+30) in Tianjin and Linyi. Prices in the remnant provinces, i.e. Hangzhou, Wuxi, and Shenyang, stood stagnant, similar to the previous day's pricing. The price range in the provinces have varied on Friday between RMB 20,770 per tonne to RMB 20,820 per tonne.

On the same day, aluminium alloy ingots saw no change. A356 to settle at RMB 21,250 per tonne while aluminium alloys - ADC12 and aluminium alloy - A380 the prices have remained unchanged at RMB 20,900 per tonne and RMB 21,900 per tonne for eight consecutive days.