Aluminium alloy prices drop across all markets in China following the downtrend in aluminium prices

As projected by Shanghai Metals Market yesterday, downstream aluminium producers have been prompted to reduce price of alloys to keep pace with steady drop in aluminium ingot prices caused by poor consumption and increasing stock. No new orders have been registered in November.

According to SMM the latest average price of Aluminum Alloys (ADC12) dropped to RMB 16,400/t today on November 8 from RMB 16,500/t yesterday and expected to move within a range of RMB 16300 – 16500 per tonne.  The drop in average prices of different grades of aluminium alloy can be seen in the following table.

ADC12 aluminium alloy ingot and A380 aluminium alloy ingot have reported the maximum drop in prices. It is learnt that high-end ADC12 products are being offered at RMB 16,000 per tonne in the spot market.

Primary ingot prices are on a downward trend dipping much below RMB/16,000/t. ---Average A00 aluminium ingot price has dropped RMB 220/t to RMB 15,690/t today. In East China’s spot market aluminium is trading at a discount of RMB 50-10 per tonne.

Non-ferrous metal in SHFE are dropping led by tin. Aluminium price will keep weak and volatile in the short term. There will be further downward movement of price below RMB 16,000/-. Al1801 aluminium contract opened at RMB 15,985/t today and is expected to trade within a range of RMB 15,860-15,865 per tonne.