Price slump in the aluminium sector as SMM reflects widespread deflation in the third week of December

In three months, from September to November, the Shanghai Metals Market (SMM) saw a price swell in the aluminium segment that was unmatched in the long past. It was attributed to a range of factors, from international supply shortages to heightened domestic production capacity in China. However, the third week of December shows a trait of the prices going back towards a range deemed somewhat normal by the traders.

Image Source: Iran Alumina Company

Primary aluminium ingot pricing

As per the SMM listing, the price of A00 primary aluminium ingot has witnessed a descent of RMB 260 per tonne, standing at RMB 19,900 per tonne on December 17. The second week of December, (13th of the month) closed with the aluminium's A00 primary ingot's average pricing listed at RMB 20,320 per tonne, and the third week commenced (December 16) with the prices further descending RMB 160, towering at RMB 20,160 per tonne.

The average A00 aluminium ingot pricing has sunk in most of the provinces, with average prices of a00 aluminium ingot listed as RMB 19,770 per tonne (-230) in Gongyi, RMB 20,020 per tonne (-220) in Foshan, RMB 19,870 per tonne (-280) in Wuxi, RMB 19,850 per tonne (-280) in Hangzhou, RMB 19,950 per tonne (-220) in Chongqing, RMB 19,980 per tonne (-230) in Shenyang, RMB 20,000 per tonne (-210) in Tianjin and RMB 19,890 per tonne (-190) in Linyi. The price range in the provinces has varied between RMB 19,750 per tonne to RMB 20,010 per tonne. The pricing trend in the provinces, as reflected in the past few days, shows that Gongyi has had the lowest pricing range on average.

Secondary aluminium ingot pricing

The secondary aluminium alloy ingot prices have also mostly glided down on the pricing index of the Shanghai Metals Market wherein the variant A356 has witnessed a loss of RMB 250 per tonne on Tuesday's SMM market while being listed with an average price of RMB 20,350 per tonne. Variant A360 has also lost 250 bucks and nestled at RMB 20,500 per tonne. On the other hand, the aluminium alloy ADC12 has been reflected to be priced at RMB 20,700 per tonne on an average after losing a 100 bucks to the previous pricing whereas variant A380's pricing remains static.

Alumina pricing

Alumina's average pricing has also seen a slight drop of RMB 4 and was listed as RMB 5,765 per tonne on the Tuesday market. The Shanghai Metals Market price indicator for alumina on Wednesday, December 11, showed a gain of RMB 8 per tonne, totalling RMB 5769 per tonne. It was the last time the average price of alumina saw a change before today. All the provincial pricing stood stagnant as well, apart from Shanxi where alumina's price has gone down by RMB 15 per tonne and was averagely listed as RMB 5,810 per tonne (range RMB 5,750-5,870 per tonne).

Other pricing

High-purity aluminium ingot variants 99.99 per cent and 99.96 per cent also glided downwards on Tuesday, and both have lost 200 bucks, standing at an average of RMB 27,000 and RMB 28,000 per tonne. On the same date, low-carbon aluminium was priced at RMB 21,041 per tonne, with a deflation of RMB 247 per tonne.