High alumina price vs falling aluminium ingot price reflected on Chinese metals' market

The average alumina price on Wednesday, November 13, has now crossed RMB 5500 per tonne in the Shanghai Metals Market. The average cost, after a gain of RMB 39, has stood at RMB 5529 per tonne, whereas the provincial prices in Lianyungang and Bayuquan are short of a mere 100 bucks to reach RMB 6000 in the stance of alumina.

Image Source: Tradeindia

Provincial alumina pricing details

China's market price of alumina in the region of Lianyungang and Bayuquan has been rising between RMB 100 and RMB 200 since October 23. Today's price in both regions stands at RMB 5900 per tonne (range of RMB 5,860-5,940 per tonne), with RMB 100 gain in a day's span. The jump in W-o-W alumina price in both regions is calculated to be 9.25 per cent on average.

In the three regions of Shandong, Guizhou and Guangxi, the range of alumina prices has been RMB 5,450-5,550 per tonne with an average of RMB 5,500 per tonne, which is 50 RMB additional to the prior day's price. Whereas, in Henan and Shanxi the price range varied from RMB 5,400-5,650 per tonne (averaged to RMB 5,525 per tonne) and 5,500-5,660 per tonne (averaged to RMB 5,580 per tonne), respectively.

As China approaches the ‘carbon peak’ target year of 2030, substantial uncertainty looms over the supply side of the aluminium industry that predominantly uses thermal power. Additionally the slowing expansion of the real estate industry, has contributed to a substantial shift in aluminium demand. Thus, alumina pricing versus aluminium pricing mismatch can be attributed to such demand-supply deviating causes among others.

A00 and alloy pricing

However, A00 aluminium ingot and alloy ingot pricing has kept falling for 3 consecutive days now.

The overall A00 aluminium ingot price has seen a market average of RMB 20,840 per tonne as of date, observing a reduction of RMB 310 per tonne to the past day. The prices ranged between RMB 20,820 and 20,860 per tonne, with the spot contract traded at a premium of RMB 40 per tonne to RMB 80 per tonne.

The average A00 aluminium ingot pricing witnessed a further drop in all the listed regions, with RMB 20,750 per tonne (-310) in Gongyi, RMB 20,730 per tonne (-270) in Foshan, RMB 20,820 per tonne (-310) in Wuxi, RMB 20,840per tonne (-300) in Hangzhou, RMB 20,820per tonne (-280) in Chongqing, RMB 20,790 per tonne (-310) in Shenyang, RMB 20,890 per tonne (-310) in Tianjin and RMB 20,890 per tonne (-310) in Linyi. The provinces' price ranged from RMB 20,710 per tonne to RMB 20,900 per tonne.

In the pricing of high-purity aluminium, the 99.99 per cent variant saw a cost drop of RMB 300 per tonne, standing at RMB 27,900 per tonne, averaging between RMB 20,880-20,900 per tonne. The 99.96 per cent purity aluminium ingot was listed at an average of RMB 28,900 per tonne, also losing 300 bucks, demonstrating the average fees to hover around RMB 28,500-29,300 per tonne.

On the same date, low-carbon aluminium was priced at RMB 21,823 per tonne on average, with a drop in daily price of RMB 273 per tonne.

In the stance of aluminium alloy ingot prices, On November 13, the A356 aluminium ingot lost RMB 300 per tonne, standing at an average of RMB

21,300 per tonne, and the A360 variant lost RMB 300, which made it priced at 21,450 per tonne on average.

On the same day, other alloys like ADC12 and AD380 ranged between RMB 21,000 to 21,200 per tonne (with an average of RMB 21,000 per tonne) and ranged between RMB 21,900-22,100 per tonne (average RMB 22,000 per tonne) each losing a 100 bucks.