Aluminium price low for 5 weeks in succession

According to the Ministry of Commerce, China aluminium price has been in weak for 5 weeks in succession, and this trend is predicted to continue in a short period resulted from a series factors including lowered raw material prices such as alumina and raised export tariff of aluminium alloy.

Data shows that A00 aluminium ingot price fell to 16820 yuan/ton from Sep 1 to July, down 6.2% compared the former week, down 10.3% compared with the beginning of August.

Low in overseas market encourages the weak aluminium price in China. Because of higher dollar, slash crude oil and gloomy consumption market of nonferrous metal, LME price of three months futures aluminium has been in a low position, down about 20% compared with begin of July.

Oversupply still exists in the domestic market. It is calculated that output of primary aluminium was 7735300T from January to July, up 13.8% year-on-year. Besides, major industries such as auto, building reduced their consumption of aluminium materials, added with levy of 15% on export of aluminium alloy, greatly affect demand on aluminium products in domestic market. 

Cut of alumina price affects aluminium price. Chalco adjusted alumina price to 3200 yuan/ton from 3500 yuan/ton on August 1, down 8.6%, which lowered cost of electrolytic aluminium production and in turn brought down of aluminium price.

Analyst indicates that aluminium price is likely to fall in a short period in China against the market condition of oversupply, increased stock and falling back primary material prices.

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