Alumina's provincial price is now RMB 5500+; Guinea's bauxite export disruption among others is proving hefty on the metals market

On November 08, 2024, Shanghai Metals Market saw the price of alumina rise to RMB 5,391 per tonne on average. However, the real eyecatcher was the price climb in the provinces of Lianyungang and Bayuquan. The price of alumina has been on a rapid surge spree since the beginning of September. Despite the five other provinces witnessing the surge, these two provinces kept a steady heed in alumina pricing. Surprisingly (or is it?), in the past 6 months (till October 22), the price of alumina in Bayuquan and Lianyungang has skipped over RMB 1600 per tonne. The W-o-W price has seen a 14 per cent hike in both provinces.

Image Source: Elemental Microanalysis

Chinese port inventories in the aforesaid provinces have dipped to over-exhausted levels since at least 2015. Contributing factors like Guinea's export disruption, Australia's bauxite mining and alumina production hurdles and high production demand in the country has led to the present scenario of alumina pricing in the chinese metals market. With spot cargoes ceasing existance fast, traders as well as smelters have been approaching other sellers in newer and non-conventional western markets, according to relevant sources.

The alumina price in Shandong on Friday ranged between RMB 5,300-5,400 per tonne (+50), understandably, with an average of RMB 5,350 per tonne. In Guizhou and Guanxi, the average alumina price was also seen to be RMB 5,350 (+75) per tonne, but it had a slightly different range of RMB 5,250-5,450 per tonne. The prices in Henan and Shanxi were RMB 5,400 and RMB 5,450 per tonne, respectively.

Ingot pricing follows

Following the price climbing trend of alumina, A00 aluminium ingot price (average) has also seen over 4.47 per cent price lump W-o-W. The average price on November 1 (Friday) was RMB 20,780 per tonne (which is also RMB 250 more than the November 7 pricing), whereas the price on November 8 has swollen to RMB 21,710 per tonne. M-o-M price has increased by a whopping RMB 1110 per tonne, with a price on October 8 of RMB 20,600 per tonne. The spot contract of A00 aluminium ingot is to be traded at a premium price of RMB 50 to a premium of RMB 90 per tonne.

The average A00 aluminium ingot pricing has risen in most of the provinces, with RMB 21,640 per tonne (+230 ) in Gongyi, RMB 21,540 per tonne (+220) in Foshan, RMB 21,700 per tonne (+230) in Wuxi, RMB 21,690 per tonne (+220) in Hangzhou, RMB 21,630 per tonne (+240) in Chongqing, RMB 21,610 per tonne (+220) in Shenyang, RMB 21,610 per tonne (+190) in Tianjin and RMB 21,660 per tonne (+240) in Linyi. The price range in the provinces varies between RMB 21,520 per tonne to RMB 20,710 per tonne.

High-purity aluminium, both 99.99 per cent and 99.96 per cent, has plunged by RMB 200 per tonne with an average rate of RMB 28,700 per tonne and RMB 29,700 per tonne, respectively. Besides, low-carbon aluminium has also gained RMB 222 per tonne with a sum average of RMB 22,636 per tonne.

In case of aluminium alloys, ADC12 and A380 have both gained 100 RMB with an average price of RMB 21,300 and RMB 22,300 per tonne, respectively. Meanwhile, A356, which has also gained RMB 250, averaged at RMB 22,150 per tonne on Friday market. The A360 variant rose to RMB 22,300 per tonne (+250), as visible at SMM price listings.