Alumina price in China extends decline by RMB66/t; A00 aluminium ingot price falls RMB220/t after two consecutive hikes

After continuous declines in the second half of the last month, the average alumina spot price in China started the fourth month of 2020 with a downfall of RMB 10 per tonne, and today on the second day the fall extended by RMB 66 per tonne to stand as low as RMB 2,267 per tonne, found Shanghai Metals Market.

The weaker demand for domestic alumina in the Chinese market has been pushing the price down. Also, the decline in alumina export from China has resulted in higher stocks while the demand is low. So, the combination of higher inventories and lower demand has further triggered the downward trend of the alumina price in China.

Today, on April 2, the north China has seen the highest downfall in alumina spot price by about RMB 70 per tonne to RMB 2,250 per tonne, followed by the central and east China, where the price has decreased by RMB 65 per tonne and RMB 63 per tonne to RMB 2,275 per tonne and RMB 2,267 per tonne, respectively. In the south, the price has remained restrained at RMB 2,520 per tonne.

The imported alumina price today has plunged by RMB 60 per tonne to RMB 2,315 per tonne, and that of the Australian alumina FOB has declined by US$ 15 per tonne to US$ 237 per tonne, according to SMM data.

Backed on the decline of alumina spot price, the A00 aluminium ingot price has recorded a sharp fall of RMB 220 per tonne after two hikes from RMB 11,470 per tonne to RMB 11,520 per tonne. As of April 2, the A00 aluminium ingot price is standing at RMB 11,300 per tonne. The average prices are expected to range between RMB 11,280 per tonne and RMB 11,320 per tonne, with spot contract to be traded at a discount price of RMB 40-0 per tonne.

Foshan and Chongqing have seen the highest decline in primary aluminium ingot price of RMB 230 per tonne, followed by RMB 220 per tonne in Wuxi and RMB 210 in Hangzhou and Gongyi. In Shenyang, Tianjin, and Linyi, the ingot price has decreased by RMB 200 per tonne, RMB 190 per tonne, and RMB 180 per tonne, respectively.

Amidst this, the prices of aluminium alloys have neither shied away from recording declines. The prices of aluminium alloys (ADC12) and aluminium alloy (A380) have shrunk by RMB 150 per tonne to RMB 13,800 per tonne and RMB 14,700 per tonne, while the price of aluminium alloy (A356) has plunged by RMB 200 per tonne to RMB 12,050 per tonne.

source https://www.alcircle.com/news/alumina-price-in-china-extends-decline-by-rmb66-t-a00-aluminium-ingot-price-falls-rmb220-t-after-two-consecutive-hikes-53420