Aluminium alloy price in China records a fall on continued decline in ingot price; Today ingot price down RMB70/t

According to Shanghai Metals Market, the price of aluminium alloys (ADC12) has recorded a change today, on June 4, by inching down from RMB 14,400 per tonne to RMB 14,350 per tonne. Prior to this, the aluminium alloys (ADC12) price had registered a decline on May 21, which was also by RMB 50 per tonne. In fact, found that since the beginning of the second quarter, the aluminium alloys (ADC12) price has been found dwindling, with intermittent restraint but no sign of hike.

On the first day of the second quarter, April 1, the price dropped from RMB 14,850 per tonne to RMB 14,750 per tonne, which again on April 9, decreased to RMB 14,650 per tonne. The next drop was almost a month later on May 6 to RMB 14,550 per tonne and then on May 17 to RMB 14,450 per tonne and on May 21 to RMB 14,400 per tonne.

The prices of aluminium alloy (A356) and aluminium alloy (A380) have also registered a drop today by RMB 100 per tonne and RMB 50 per tonne to stand at RMB 14,750 per tonne and RMB 15,200 per tonne, respectively.

The downfall in aluminium alloys price could be attributed to continued fall in primary aluminium price. Even today, the A00 aluminium ingot price has dwindled by RMB 70 per tonne, marking the sixth back-to-back decline, to stand at RMB 14,100 per tonne. The average prices are expected to range between RMB 14,080 per tonne and RMB 14,120 per tonne. Spot aluminium contract is likely to be traded at a premium of RMB 40 per tonne.

All the major Chinese cities have also witnessed a sharp decline in the aluminium ingot price today. For instance, in Chongqing, Shenyang, and Tianjin, the aluminium ingot price has decreased by RMB 90 per tonne, while that in Foshan, Wuxi, and Linyi, the price has declined by RMB 80 per tonne.

However, the downtrend in aluminium alloy price in China has been found bolstering the buying enthusiasm among downstream aluminium consumers, resulting in, lowering the stocks throughout major areas.