China’s Aluminium Prices Decline Amid Weak Demand

According to a survey by Shanghai Metals Market (SMM), China’s primary aluminium prices and input costs have declined, reflecting muted demand for the commodities. Bauxite emerged as the only exception, with its domestic price remaining stable and its imported price increasing by $0.08 per tonne to $105.84 per tonne.

A00 Aluminium Ingot Price

On December 24, China’s A00 aluminium ingot price dropped by RMB 80 per tonne to stand at RMB 19,790 per tonne, with an average price range between RMB 19,770 and RMB 19,810 per tonne. Regional price declines were observed across the board:

• Hangzhou and Shenyang: Fell by RMB 100 per tonne to RMB 19,810 per tonne.
• Wuxi: Declined by RMB 100 per tonne to RMB 19,790 per tonne.
• Gongyi, Chongqing, and Linyi: Dropped by RMB 90 per tonne to RMB 19,720 per tonne, RMB 19,840 per tonne, and RMB 19,870 per tonne, respectively.

The prices for low-carbon aluminium and high-purity aluminium also decreased, falling by RMB 108 per tonne and RMB 100 per tonne, respectively, to RMB 20,965 per tonne and RMB 26,900 per tonne.

Input Costs

SMM data highlighted similar trends in aluminium input costs:

• Alumina: The average spot price decreased by RMB 11 per tonne to RMB 5,739 per tonne. Specific regional declines included:

Henan: Down by RMB 20 per tonne to RMB 5,720 per tonne.
Shanxi: Reduced by RMB 20 per tonne to RMB 5,760 per tonne.
Lianyungang and Bayuquan: Fell by RMB 50 per tonne to RMB 6,050 per tonne.

• Bauxite: Domestic prices remained unchanged at RMB 680 per tonne, while imported prices gained RMB 0.08 per tonne to reach $105.84 per tonne.

The declines in aluminium and alumina prices reflect subdued demand, particularly in regions where smelters have reduced production due to the winter heating season