Category Archives: Weekly Review
Dear readers, our latest “Weekly Report Review” has been published. If you have any question or need please tell us, thanks!
Weekly Report Summary: last week, most products prices remain stable.
Energy
Due to good US nor-farm data and ECB reducing rates, Crude oil price rose slightly last week to $102.66/t. But coal prices remain at a low level because of domestic weak demand and passive sentiment.
Aluminium and alumina
Imported alumina prices fell again last week due to domestic sluggish aluminium market and weak demand. Overall aluminum price showed a slightly increase to ¥13,295/t although the price is unlikely to rise much more.
Raw materials
Although recently low sulphur grade coke prices continued to fall, anode grade pet coke prices remain stable. Under the situation, other products prices remain stable except aluminum fluoride.
ALF3 low level price increased by ¥50/t because of low inventory.
We have been offering a free report since September called the AZ China Aluminium Weekly Alert® which is a weekly monitor on the primary aluminium market in China. If you are not already signed up as a free subscriber, do so today! All current free subscribers will be eligible for a discounted subscription in the future.
The Weekly Alert provides fundamental, technical, data and news analysis, and covers a range of market metrics such as:
- the SHFE market (price and inventory)
- the economy
- end demand
- production numbers
- cash costs
- equity market performance
The Weekly Alert is a useful market tracker for traders, a powerful detailed report for analysts, and a valuable inside look into the market for anyone with an interest in the aluminium industry. It also is the perfect complement to our quarterly Red Book.
This report is still currently available as a complementary service. During this period, we are open to your suggestions about how to customize the report to best meet your needs. To subscribe to this free weekly report, simply email enquiries@az-china.com.
Those of you who receive our regular weekly update on the carbon market will probably have noticed just what a sorry state China’s raw materials market is in right now.
Two examples in this week’s report illustrate:
* Calcined coke prices are now below the high end of the green coke price range. Not by a lot, and only at the top end of the range, but given a yield factor of 80% in the transition from green to calcined, the should be a premium for calcined coke, not a discount.
* Aluminium fluoride prices dropped RMB300 this week. There has been a series of measures to reduce output across the industry, in the hope that the price would hold or even rise. But those measures were always going to be difficult to retain for very long. There was a drastic reduction in output a couple of months ago, and again at the start of July, but the resolve amongst producers seems to have collapsed. Outcome = a drop in the market price.
It is at first glance a little hard to reconcile falling raw materials prices with rising metal production, but we think the market had already factored the metal equation into the pricing, and in fact were expecting more demand than what we are seeing.
This would help explain why coke prices were supposed to go up by the end of July (see our post of about 3 weeks ago), but have held largely steady, and why calcined coke prices seem to be so low, relative to GPC. The market was expecting things to be a lot more buoyant by now, with one third of the third quarter now gone, and so far no sign of the supposed H2 improvement.
PS - if you haven’t been receiving our weekly report, contact us at enquiries@az-china.com.
Next Monday June 6 is a public holiday in China, Dragon Boat Festival.
The AZ China office will be closed Monday, though I will still be reachable by email.
The weekly market review will be published Tuesday.
As we reported previously, the weekly report is now available for all to subscribe to.
At only US$650 per year for 50 editions (excluding China national holidays), this means you only pay $13 per week for a report which brings the China market to your fingertips.
We have also completely re-designed the format, moving away from test to an easy-to-digest visual format. We also added some new products. Here’s an example of how the report looks now.
- A snapshot of one page of the report
If you would like to subscribe, contact us at blackchina@az-china.com.
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