China’s A00 aluminium ingot price registers a W-o-W hike of RMB470/t on improved downstream operations

According to Shanghai Metal Market (SMM) survey, China’s A00 aluminium ingot market has initiated the week with a price surge of RMB 230 per tonne to register at RMB 19,460 per tonne. On a week-on-week basis, the price has escalated by RMB470 per tonne, while that on a month-on-month calculation stands slightly lower by RMB 30 per tonne. The average prices are estimated to range between RMB 19,440 per tonne to RMB 19,480 per tonne, with the spot contract to be traded at a discount price of RMB 100 per tonne to RMB 60 per tonne.

China’s domestic price of low-carbon aluminium has significantly increased by RMB 233 per tonne to stand at RMB 20,329 per tonne, marking a month-on-month hike of RMB 69 per tonne from RMB 20,260 per tonne.

High purity aluminium (99.99%) price has skyrocketed by RMB 200 per tonne to stand at RMB 26,600 per tonne, with average prices to range between RMB 26,200 per tonne and RMB 27,000 per tonne.

Region-wise prices

The domestic price of aluminum ingot in China has shown an upward trend across all regions, with significant increases in Hangzhou, Wuxi, and Chongqing. In Hangzhou, the price has surged by RMB 250 per tonne, reaching RMB 19,460 per tonne, while the price in Wuxi and Chongqing has seen a rise of RMB 240 per tonne to RMB 19,460 per tonne and RMB 19,420 per tonne, respectively.  In Gongyi, Foshan, and Tianjin, A00 aluminium ingot price has increased by RMB 230 per tonne, reaching RMB 19,370 per tonne, RMB 19,380 per tonne, and RMB 19,410 per tonne. In Shenyang and Linyi, A00 aluminium ingot price has expanded by RMB 200 per tonne and RMB 180 per tonne to start the week at RMB 19,380 per tonne.

Macro analysis

China’s A00 aluminium ingot price has increased for the three consecutive days since August 15, attributing to the rebound in demand owing to increased downstream operations, thanks to improved orders for 3C and NEVs. Under the domestic economic stimulus policy, downstream consumption is expected to increase.

SMM expects short-term aluminium prices may complete a bottoming out and show a rebound trend, considering the strong performance of alumina price.

Raw material prices

Among primary aluminium input costs, aluminium powder price has increased by RMB 0.30 per kg to stand at RMB 22.1 per kg, with average prices to range between RMB 22-22.2 per kg. On a weekly basis, the price is RMB 0.40 per kg higher than RMB 21.7 per kg, but that on a monthly calculation has edged a fall of RMB 0.20 per kg.

Aluminium alloy prices

In tandem with the rise of China’s A00 aluminium ingot price, aluminium alloy prices have recorded magnificent rise. For instance, aluminium alloy (A356) price has jumped by RMB 250 per tonne to stand at RMB 19,900 per tonne on August 19, with average prices to range between RMB 19,700-20,100 per tonne.

On the other hand, aluminium alloys (ADC12) price and aluminium alloy (A380) price have gained RMB 150 per tonne over the weekend to peg at RMB 20,050 per tonne and RMB 21,100 per tonne. The average prices are estimated to range between RMB 19,950-20,150 per tonne and RMB 20,950-21,250 per tonne.