Spot alumina price continues to rise by RMB17/t; A00 aluminium price drops despite fall in inventories

According to Shanghai Metals Market, the average spot price of alumina has extended its rise further by RMB 17 per tonne to stand at RMB 2,491 per tonne, as of August 26, 2019. The alumina price started growing incessantly since August 16, ranging between RMB 2,442 per tonne and RMB 2,491 per tonne. Only on August 22, it remained restrained at RMB 2,463 per tonne.

In the east, central, and north, the alumina price has increased by RMB 20 per tonne to RMB 2,500 per tonne, RMB 2,490 per tonne, and RMB 2,510 per tonne, respectively.

The Australian alumina FOB price, on the other hand, continues to remain restraint at US$300 per tonne for the third consecutive day.

Against the background of increased alumina price, the A00 aluminium ingot price today refused to register a growth. Even the fall in social inventories of primary aluminium by about 20,000 tonnes to 1.04 million tonnes has failed to lift the aluminium ingot price. It has rather dwindled by RMB 60 per tonne to RMB 14,250 per tonne. The spot contract is likely to be traded between RMB 14,230 per tonne and RMB 14,270 per tonne, with a premium price of RMB 40 per tonne.

While the aluminium ingot price drop has touched upon almost all the major cities, it decided to record an exception in Shenyang by growing RMB 30 per tonne to RMB 14,230 per tonne. In other cities like Hangzhou, Chongqing, Wuxi, Foshan, and Tianjin, the price had dipped by RMB 65 per tonne, RMB 60 per tonne, and RMB 50 per tonne to stand at RMB 14,260 per tonne, RMB 14,280 per tonne, RMB 14,250 per tonne, RMB 14,270 per tonne, and RMB 14,220 per tonne, respectively.

The price of aluminium alloy (A356) has dropped as well, backed on the decline in A00 aluminium ingot price. The price of the former is now standing at RMB 14,900 per tonne after falling by RMB 50 per tonne.