No movement in China’s A00 aluminium ingot price, but aluminium alloy prices move up by RMB100/t

For the first time in five months, as of 13^th August, A00 aluminum ingot price on the Shanghai Metals Market (SMM) has remained entirely unchanged, marking a significant pause in the usual daily movements. The last time this stabilisation occurred was on March 19, 2024. The current average price stands at RMB 18,990 per tonne, with average prices ranging between RMB 18,970 per tonne and RMB 19,010 per tonne. The spot contract is expected to trade at a discount of RMB 50 per tonne to RMB 10 per tonne, averaging at RMB 10 per tonne.

Region-wise analysis

The average price of A00 aluminium ingot price has also remained restrained in Gongyi but elevated across some other regions like Shenyang and Foshan, where the price has increased by RMB 50 per tonne and RMB 10 per tonne to clock at RMB 18,990 per tonnes and RMB 18,940 per tonne, respectively.

China’s domestic low-carbon aluminium price has increased by RMB 23 per tonne on August 13 to peg at RMB 19,895 per tonne.

Raw material prices

The prices of raw materials like domestic bauxite have remained the same at RMB 640 per tonne, but the average imported bauxite price has increased slightly by US$0.91 per tonne to settle at US$ 76.11 per tonne, found SMM. Also, the imported bauxite price from Guinea has grown by US$ 1 per tonne to US$ 75 per tonne, with average prices to range between US$ 74-76 per tonne.

Aluminium alloy prices:

The price of aluminium alloys (ADC12) has ascended by RMB 100 per tonne to stand at RMB 19,750 per tonne as of August 13. The average prices are estimated to range between RMB 19,650-19,850 per tonne. With the present rise, the price of aluminium alloys (ADC12) has registered a week-on-week increase of 1.28 per cent from RMB 19,500 per tonne.

Similarly, the price of aluminium alloy (A380) has gained RMB 100 per tonne to peg at RMB 20,750 per tonne as of August 13, marking a W-o-W of 1.28 per cent as well. The average prices are likely to hover around RMB 20,650-20,850 per tonne.

Market analysis:

The absence of price movement in the SMM aluminium ingot today is an unusual event. Each day, the SMM prices have typically seen movement, reflecting the market’s sensitivity to some dynamic factors but today’s lack of change in the market reflects a departure from the trend. This could signify a temporary equilibrium in the market.