China’s domestic A00 aluminium ingot price experienced a decline of RMB 510 per tonne or 2.60 per cent through the month of October to settle at RMB 19,080 per tonne, found the Shanghai Metals Market survey. The fall occurred primarily in the early days of October, bringing the primary aluminium ingot price below RMB 19,000 per tonne level, attributing to slow consumption in the downstream sector as China’s domestic construction sector was yet to revive. Besides, geopolitical conflicts drove import volume to increase, weighing on domestic prices.
The average domestic alumina price, on the other hand, recorded a sharp rise through the month, exceeding RMB 3,000 per tonne. Gaining RMB 48 per tonne through October, the alumina price closed the month at RMB 3,009 per tonne, according to SMM. The reduced dependence on imported alumina is one of the reasons behind its price hike. Meanwhile, the export volume grew significantly amid geopolitical conflicts causing a tight supply in the domestic market.
The imported bauxite price also built up till October 13 to US$69.6 per tonne from US$68.37 per tonne. It has been found that China’s reliance on imported bauxite is now close to 70 per cent, as the country is having less bauxite reserves with low grade minerals. However, towards the latter phase of October, China’s imported bauxite price started declining to close the month at US$69.72 per tonne.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
