China’s alumina spot price mounts over RMB4200/t following a significant gain of RMB44/t

China's non-ferrous metal market has seen a historical price movement of the average alumina spot price as it has leapt by RMB 44 per tonne overnight to exceed RMB 4,200 per tonne. According to the Shanghai Metals Market, China's domestic alumina price clocked at RMB 4,214 per tonne on Thursday, October 10, marking a month-on-month surge of 6.9 per cent from RMB 3,942 per tonne.

In Henan, the alumina price has expanded by RMB 65 per tonne to stand at RMB 4,225 per tonne, with average prices likely to range between RMB 4,150 and 4,300 per tonne. In Shanghai, the price has gained RMB 45 per tonne to peg at RMB 4,175 per tonne, followed by an increase of RMB 30 per tonne in Shanxi and Guangxi to stand at RMB 4,280 per tonne and RMB 4,160 per tonne, respectively.

However, the Australian alumina FOB price has remained restrained at US$550 per tonne as of Thursday, October 10.

Other input costs

China's imported bauxite price has increased by US$1.13 per tonne to US$78.62 per tonne on Thursday, October 10. The cost of bauxite, mainly imported from Guinea, has ascended by US$1.5 per tonne to settle at US$77 per tonne, with average prices estimated to hover around US$76-78 per tonne.

China largely depends on Guinea for bauxite supply since Indonesia banned exports to China. The increasing domestic demand for the ore needed for alumina production has driven the price of imported bauxite from Guinea. In sequence, the growing production of primary aluminium, leading to a demand rise for alumina, has resulted in a price hike.

A00 aluminium ingot price

China's primary aluminium ingot price has slightly increased by RMB 60 per tonne after a decline of RMB 150 per tonne the previous day. With the recent increase, China's A00 aluminium ingot price has come in at RMB 20,510 per tonne on Thursday, October 10, marking a month-on-month growth of 6.05 per cent.

Today, the average prices are expected to range between RMB 20,490-20,530 per tonne, with a spot contract to be traded at a discount price of RMB 60-20 per tonne.

In Wuxi and Foshan, primary aluminium price has jumped by RMB 80 per tonne to stand at RMB 20,530 per tonne and RMB 20,390 per tonne, respectively, followed by an increase of RMB 70 per tonne in Hangzhou to RMB 20,530 per tonne. In Chongqing and Shenyang, A00 aluminium ingot price has heightened by RMB 60 per tonne to RMB 20,480 per tonne.

China's domestic low-carbon aluminium price has escalated by RMB 91 per tonne to stand at RMB 21,441 per tonne, while the cost of high-purity aluminium (99.99%) has remained unchanged at RMB 27,500 per tonne.