China’s A00 aluminium ingot price drops by RMB60/t due to weaker demand-supply scenario

After recording back-to-back growth over the past few days, the A00 aluminium ingot price has dropped by RMB 60 per tonne on Friday, May 19, to reach RMB 18,540 per tonne. On a W-o-W calculation, a hike of RMB 650 per tonne was recorded from RMB 17,890 per tonne on May 12. As per the SMM data, the average prices are expected to range between RMB 18,520 per tonne and RMB 18,560 per tonne, with the spot contract price expected to be traded at a premium price of RMB 130 to RMB 170 per tonne.

The global aluminium demand-supply gap has narrowed down as China's smelters have increased operations amid dismal production predictions in European Union markets. The A00 aluminium ingot price has witnessed a fall in all the provinces, except in Huzhou and Chongqing, where the prices have expanded by RMB 190 per tonne and RMB 180 per tonne to come in at RMB 18,620 per tonne and RMB 18,600 per tonne. In Linyi, the price has gained RMB 160 per tonne to halt at RMB 18,600 per tonne.

On the same day, the prices in Foshan and Tianjin slipped by RMB 90 per tonne to peg at RMB 18,520 per tonne and RMB 18,490 per tonne. Gongyi and Wuxi's prices have dipped by RMB 80 per tonne and RMB 60 per tonne to score at RMB 18,390 per tonne and RMB 18,540 per tonne. The A00 aluminium ingot price in Shenyang has fallen by RMB 10 per tonne to come in at RMB 18,590 per tonne.

The domestic price of low carbon aluminium in China has contracted by RMB 73 per tonne to come in at RMB 19,122 per tonne. The high purity aluminium (99.99%) price and high purity aluminium (99.996%) price have dwindled by RMB 100 per tonne to clock at RMB 26,100 per tonne and RMB 27,100 per tonne.

The price of aluminium alloy (A356) has dropped by RMB 50 per tonne to peg at RMB 19,350 per tonne. However, aluminium alloys (ADC12) and aluminium alloy (A380) have remained unchanged at RMB 18,700 per tonne and RMB 19,700 per tonne.