China’s A00 aluminium ingot price rebounds to RMB22990/t on continued inventory fall; Alumina price grows further on closed import window

The ongoing fall in China’s primary aluminium inventories due to recovery of downstream demand, along with the slow resumption of new production capacities for the fresh outbreak of COVID19, has lifted the A00 aluminium ingot price by RMB 90 per tonne to stand at RMB 22,990 per tonne on Tuesday, March 29. SMM data shows the price has increased after two consecutive days of downfall from RMB 23,160 per tonne to RMB 22,900 per tonne. Today, the average prices are estimated to range between RMB 22,970 per tonne and RMB 23,010 per tonne, with spot contract to be traded at a premium price of RMB 90-50 per tonne.

In Shenyang, A00 aluminium ingot price has climbed up by RMB 100 per tonne to come in at RMB 22,920 per tonne, followed by the hike of RMB 90 per tonne in Foshan and Chongqing to rest at RMB 23,010 per tonne and RMB 22,900 per tonne, respectively. In Wuxi and Hangzhou, primary aluminium ingot price has increased by RMB 80 per tonne to settle at RMB 22,970 per tonne and RMB 22,980 per tonne, while the price in Gongyi and Linyi has grown by RMB 60 per tonne and RMB 50 per tonne to close at RMB 22,850 per tonne and RMB 22,990 per tonne, respectively.

The average alumina spot price has continued to grow for the fourth day in a row, albeit slower than the previous days, by RMB 1 per tonne to stand at RMB 2,978 per tonne on March 29. Lesser imports into the country, causing a switch to domestic consumption of alumina, are pushing up the prices.

In Guizhou and Shandong, alumina spot price has increased by RMB 10 per tonne and RMB 5 per tonne to stand at RMB 2,985 per tonne and RMB 2,965 per tonne, respectively.

Recovery of downstream demand has also led to the aluminium alloy (A356) price rise by RMB 100 per tonne to RMB 24,400 per tonne, with average prices likely to range between RMB 24,300 per tonne and RMB 24,500 per tonne. However, aluminium alloys (ADC12) price and aluminium alloy (A380) price have remained restrained at RMB 22,400 per tonne and RMB 23,400 per tonne, respectively.