China’s A00 aluminium ingot price nosedives by RMB980/t M-o-M amid subdued buying sentiment

According to the Shanghai Metals Market, A00 aluminium ingot price has initiated the month, July 1, 2024, with a dip of RMB 40 per tonne, indicating a continued bearish price trend of primary metal across the Chinese domestic market. The reason is the traditional off-season among manufacturing sectors, resulting in poor consumption of aluminium by the downstream plants.

Fluctuations were observed throughout the week as there was a strong wait-and-see sentiment among downstream buyers, while sellers remained reluctant to sell, keeping their offers firm. According to SMM, China’s A00 aluminium ingot price on July 1 stood at RMB 20,110 per tonne, down by RMB 150 per tonne from a week ago and RMB 980 per tonne from a month earlier.

However, annually, the price is still up by RMB 1,560 per tonne from RMB 18,550 per tonne.

As was reported on June 27, China’s social inventories of aluminium ingot faced destocking obstacles throughout the week, increasing by 7,000 tonnes. The ample aluminium ingot for sale is why aluminium prices can hardly recover to a premium after falling.

Aluminium ingot price by provinces

In Tianjin and Hangzhou, A00 aluminium ingot price has decreased the most on July 1, standing at RMB 20,130 per tonne and RMB 20,110 per tonne, down by RMB 70 per tonne. In Wuxi, Shenyang, and Linyi, A00 aluminium ingot price has declined by RMB 40 per tonne to reach RMB 20,110 per tonne, RMB 20,060 per tonne, and RMB 20,110 per tonne, respectively, followed by the drop of RMB 20 per tonne in Foshan, Gongyi, and Chongqing to stand at RMB 19,940 per tonne, RMB 19,990 per tonne, and RMB 20,060 per tonne.

Raw material prices

Among primary aluminium input costs, China’s imported bauxite price has increased by US$1.42 per tonne to settle at US$73.59 per tonne on Monday, July 1. The price rose after remaining restrained since June 17, following a marginal growth from US$72.01 per tonne on June 13 to US$72.17 per tonne on June 14.

The imported bauxite price from Australia grew by US$2 per tonne on July 1 to reach US$62 per tonne, with average prices ranging between US$61-63 per tonne.

The imported price from Malaysia gained US$0.50 per tonne on the same day to stand at US$52.50 per tonne, with average prices hovering around US$50-55 per tonne.

The average domestic bauxite price remained unchanged at RMB 630 per tonne, barring an increase of RMB 10 per tonne in Guinea to RMB 505 per tonne.

Aluminium alloy prices

In tandem with the A00 aluminium ingot price fall, aluminium alloy (A356) price has shrunk by RMB 50 per tonne to stand at RMB 20,550 per tonne as of July 1. According to SMM, the average prices are expected to range between RMB 20,400 per tonne and RMB 20,700 per tonne.

Similarly, aluminium alloy (A360) price has slipped by RMB 50 per tonne to close the day at RMB 20,900 per tonne, with average prices to range between RMB 20,800 per tonne and RMB 21,000 per tonne.