SMM pricing stabilising after months of rapid hike; aluminium ingot follows the trend

The price of alumina, as well as primary and secondary aluminium ingot, is stabilising from the leaps of hike in the Chinese metals market.

Image Source: Advanced Ceramic Materials (ACM) Corporation

Alumina pricing: Averaged and provincial

On Monday, December 2, as the week and the month started, the average price of alumina gained RMB 6 per tonne and stood at RMB 5,731 per tonne.

In contrast, prices in provinces like Shanxi, Guizhou and Guangxi remained unfazed from the previous week's closing price. The provincial price of alumina in Shandong and Henan has gained another RMB 10 and RMB 15 per tonne to the prior pricing and was listed as RMB 5,700 per tonne and RMB 5,740 per tonne, respectively. However, two provinces, namely Lianyungang and Bayuquan, are listed as the highest-priced regions of China, with an average price of alumina gaining RMB 50 per tonne after four consecutive days and ranging between RMB 6,110 and 6,190 per tonne with an average of RMB 6,150 per tonne.

When comparing the ratio of price hikes, it shows a sharp spike with a 91.2 per cent gain in the average pricing of alumina Y-o-Y in the Shanghai Metals Market (SMM).

Primary aluminium ingot pricing

On Monday, the A00 aluminium ingot gained RMB 20 per tonne to Friday's price (November 30) at RMB 20,360-20,400 per tonne (the average price is RMB 20,380 per tonne), which is RMB 290 deficient W-o-W and RMB 450 deficient M-o-M.

The spot contract will be traded on December 2 with a premium of RMB 20 to a discount of RMB 20.

However, if the price from last year is considered, the average price of A00 aluminium on December 4, 2023, was RMB 18,700 per tonne, evidently showing an 8.9 per cent Y-o-Y growth in the 2023-2024 trajectory.

The average A00 aluminium ingot pricing increased further in most provinces, with prices depicted as RMB 20,280 per tonne (+20) in Gongyi, RMB 20,370 per tonne (+40) in Foshan, RMB 20,410 per tonne (+10) in Hangzhou, and RMB 20,380 per tonne (+40) in Chongqing. The price of Shenyang, Tianjin and Linyi decreased and stood at RMB 20,360 per tonne (-20), RMB 20,810 per tonne (-10), and RMB 20,320 per tonne (+30), respectively. The primary metal's ingot price in the Wuxi province stood stagnant, similar to the previous day's pricing. The price range in the provinces has varied on Friday between RMB 20,260 per tonne to RMB 20,400 per tonne.

Secondary aluminium ingot pricing

The aluminium alloy ingot variant ADC12 saw no price change on the same day. Variant A356 was to settle at RMB 20,850 per tonne, while aluminium alloys - A360 and aluminium alloy - A380 prices have escalated to RMB 21,000 per tonne and RMB 21,900 per tonne on the first day of the week and the concluding month of the calendar year.