China: A00 aluminium ingot price falls despite inventory decline

The price of A00 aluminum ingot in China has experienced a decline for the third consecutive time, despite sluggishness of primary aluminum inventories throughout the country. Alcircle's report suggested that the decrease in demand for metal by downstream producers may be a "contributing factor" for this drop.

The primary aluminium ingot prices dropped by RMB 70/t on Tuesday, 25 April, and settled at RMB 18,830/t. The average price range is projected to be between RMB 18,810/t and RMB 18,850/t. Furthermore, a spot contract is expected to be traded at a discounted price of RMB 20/t or a premium price of RMB 20 per tonne (t).

According to sources, prices of primary aluminium ingot has decreased by RMB 30/t w-o-w, dropping from RMB 18,860/t. However, the price has increased by RMB 510/t month-on-month (m-o-m), rising from RMB 18,320/t.

The A00 aluminium ingot price in Hangzhou has experienced a significant drop of RMB 190/t and now stood at RMB 18,860/t. In Linyi, the price dropped by RMB 100/t to RMB 18,880/t.

In Gongyi and Wuxi, the primary aluminium ingot price has declined by RMB 80/t and RMB 75/t to settle at RMB 18,730/t and RMB 18,825/t, respectively. Meanwhile, in Shenyang and Tianjin, the price has decreased by RMB 70/t and RMB 50/t to reach RMB 18,860/t and RMB 18,870/t.

In Foshan and Chongqing, the A00 aluminium ingot price has dropped by RMB 60/t to RMB 18,960/t and RMB 18,930/t, respectively.

Today, the domestic price of low-carbon aluminium has dropped by RMB 60/t and is now at RMB 19,515/t.

Similarly, the price of aluminium alloy (A356) has decreased by RMB 100/t, in line with the trend of A00 aluminium ingot price, and dropped for the third consecutive day. The price of aluminium alloy (A356) is currently at RMB 19,700/t.

In contrast, prices of aluminium alloys (ADC12) and aluminum alloy (A380) have declined by RMB 50/t each and are currently at RMB 19,250/t and RMB 20,250/t, respectively.

Regarding the input costs for primary aluminium, the price of aluminium powder has edged down by RMB 0.10/t, with a current price of RMB 20.8/kg. Average prices are estimated to be between RMB 20.7/kg and RMB 20.9/kg.

Note: This article has been published in accordance with an article exchange agreement between Alcircle and SteelMint.