Chinese A00 aluminium ingot price continues to grow while input costs decide to show restraint

According to Shanghai Metals Market, the A00 aluminium ingot price records a rise yet again on February 21, 2019, Shanghai Metals Market found. From RMB 13,390 per tonne, as of February 20, the price today has increased by RMB 40 per tonne to RMB 13,430 per tonne. With this rise today, the A00 aluminium ingot crosses its highest price so far this month of RMB 13,410 per tonne. The average prices today are expected to range between RMB 13,410 per tonne to RMB 13,450 per tonne, with spot discounts to settle at RMB 70 per tonne to RMB 30 per tonne.

In the east (Wuxi and Hangzhou), the ingot price has grown by RMB 45 per tonne and RMB 30 per tonne to stand at RMB 13,430 per tonne and RMB 13,420 per tonne respectively. In the south and north, on the other hand, the ingot price has increased by RMB 40 per tonne and RMB 20 per tonne to hover at RMB 13,490 per tonne and RMB 13,410 per tonne.

According to another update from SMM, Aluminium Corp of China (Chalco) declared on Wednesday, February 20, about its plans to transfer 190,000 tonnes of annual aluminium smelting capacity of a Shanxi-based unit to a Yunnan-based unit of its parent company Chinalco. The transfer is expected to be done at RMB 950 million.

The capacity would be transferred from Shanxi Huasheng to Heqing Yixin Aluminium that has access to cleaner hydropower.

China allows aluminum smelters to move or acquire new capacity in regions that have available quotas.

Coming back to the price movement, the prices of aluminium’s raw materials like bauxite, alumina, aluminium fluoride, and the pre-baked – none has registered any change. The bauxite price is still hovering at RMB 550 per tonne and that of alumina at RMB 2,777 per tonne. Aluminium fluoride continues to be at RMB 12,100 per tonne while the pre-baked anode at RMB 3,457 per tonne.