According to the Shanghai Metal Market (SMM) survey, China’s A00 aluminium ingot price has shed off RMB 190 per tonne from the previous day to reach the three-month low. As per the data, the domestic price has come in at RMB 19,570 per tonne, which is significantly down by RMB 570 per tonne week-on-week, attributed to the ongoing traditional off-season in the manufacturing sector, leading to weaker demand from downstream industries. In this backdrop, the increase in aluminium production, resulting in oversupply in the market, is adding up a cause for receded prices.
The average prices are expected to range between RMB 19,550-19,590 per tonne, with the spot contract estimated to be traded at a discount price of RMB 70-30 per tonne.
