Aluminium Price in China Faces Descending Pressure
Recently , Weiqiao and Xinfa Group have cut huge aluminium capacity and aluminium market in China is in surplus. Weiqiao Group has declared that it will release aluminium into the open matket for sale. Besides, Xinfa Group ia already selling in the market and this might worsen the situation in the market. Therefore, expects say that aluminium prices will face continuous downward pressure.
The average aluminium price in the four major domestic markets still unchanged week-on-week at 2,500 RMB per tonne on August 14.
According to update by SMM, the major aluminium producers in China had two meetings last week to discuss future price trends of aluminium. In SMM’s opinion, because of the uncertainty in the market, both the sellers and buyers need to avoid taking any risk and took a wait-and-see stance, which kept aluminium prices flat week-on-week.
SMM data showed that because of rising aluminium prices, aluminium billet stocks in Guangdong, China’s most active aluminium billet consumption center, improved as much as 59.8% month-on-month as on August 14. Total stocks in the region stood at 115,200 tonnes as on August 14.
Besides, China Aluminum International Trading Co. cut aluminium prices it offered across major markets for three consecutive days . Today’s price changes can be seen in the following chart: