China's average alumina spot price has expanded by RMB 7 per tonne, officially closing at RMB 3,334 per tonne, while the alumina price in Shandong has augmented by RMB 20 per tonne to rest at RMB 3,200 per tonne. The alumina price in Guizhou has levitated by RMB 15 per tonne to stop at RMB 3,315 per tonne, and the alumina price in Guangxi has ascended by RMB 10 per tonne to halt at RMB 3,370 per tonne.
The CIF Index of Import Bauxite price has deflected US$0.10 per tonne to close at US$70 per tonne.
Reason for the sudden alumina price surge
The explosion at an oil terminal in Conakry, the capital of Guinea, caused a 30% jump in the Shanghai Futures Exchange (SHFE) price for the product that sits between bauxite and metal in the primary aluminium production chain. Guinea is a significant bauxite supplier to China's alumina refineries, and China's dependency on Guinean bauxite has been growing over the past few years.
This ever-increasing dependency explains the oversized price reaction to events in Conakry, which threatened to disrupt the transport of bauxite from the country's mines to its main shipping terminals. The Chinese aluminium raw materials market was already tight due to supply disruptions from bauxite mines in northern China, which are closed for government inspections. Also, several alumina refineries had to close or curtail operations to meet energy and emissions targets in China.
SMM A00 aluminium ingot price analogy
Today, on January 12, the SMM aluminium ingot price has shed RMB 30 per tonne to rest at RMB 19,130 per tonne, with the average prices hovering around RMB 19,110 per tonne and RMB 19,150 per tonne.
If we consider the SMM aluminium price on December 12, we can see a Month-on-Month influx of RMB 690 per tonne or 3.74 per cent from RMB 18,440 per tonne recorded that day.
When we look at last year's SMM A00 aluminium ingot price chart, it can be seen the highest price was recorded on September 28 at RMB 19,850 per tonne, just before the Mid-Autumn Festival or the Moon Festival began in China.
After the celebrations, the prices began to fall momentarily before reaching another high point during December 28 to 29, when it stood at RMB 19,570 per tonne. After that, there was a gradual decline of 0.2 per cent till January 3, when the price spiked again to halt at RMB 19,530 per tonne.
The eight central provinces in China have all witnessed fluctuating aluminium prices today, with it rising the highest in Linyi by RMB 60 per tonne to close at RMB 19,210 per tonne. In Gongyi and Wuxi, the aluminium prices have soared by RMB 40 per tonne to officiate at RMB 19,080 per tonne and RMB 19,140 per tonne. The aluminium price in Hangzhou has grown by RMB 30 per tonne to stop at RMB 19,130 per tonne, while in Tianjin, it has crept RMB 10 per tonne upward to close at RMB 19,160 per tonne.
The highest slump has been recorded in Chongqing, where the aluminium price has dropped by RMB 110 per tonne, closing at RMB 19,100 per tonne. In Shenyang, the aluminium price has plunged by RMB 50 per tonne to settle at RMB 19,120 per tonne. Lastly, in Foshan, there hasn't been any recorded change, with the aluminium price remaining stoic at RMB 19,140 per tonne.
The price of aluminium alloy (A360) has increased by RMB 50 per tonne to settle at RMB 20,050 per tonne.
Responses
