As of August 31, the monthly average price for A00 aluminium ingots was RMB 23,869.0 per tonne in East China, up 3.34 per cent M-o-M; RMB 24,010.0 per tonne in South China, up 3.79 per cent M-o-M; and RMB 23,762.4 per tonne in Central China, up 3.42 per cent M-o-M, based on Mysteel’s assessment.
In August, China’s aluminium prices fluctuated widely under the shifting macro expectations and tight spot supply, with the monthly average price rising noticeably compared to July.
Early in the month, improved overseas macro expectations and a periodic weaker US dollar, coupled with continuous destocking of domestic traders’ inventory, drove a rapid rebound in SHFE aluminium prices.
Mid-month prices briefly surged but subsequently retreated and consolidated as US inflation data and rate hike expectations repeatedly unsettled the market, while downstream buyers grew increasingly wary of high prices.
Entering late August, aluminium prices strengthened once again, supported by low inventories, high molten aluminium ratios, and expectations for peak-season demand.
Looking at the full month, financial attributes drove short-term price fluctuations, but supply-side rigid constraints and continuous destocking in the spot market remained the core factors supporting the upward shift in the aluminium price center.
According to a full-sample survey of Chinese primary aluminium producers by Mysteel, China’s primary aluminum output in August 2026 stood at 3.88 million tonnes, up 2.41 per cent Y-o-Y and up 0.02 per cent M-o-M (based on 31 actual production days); the average daily output of primary aluminum was 125,100 tonnes, roughly flat M-o-M.
In August, domestic operating capacity for aluminium remained generally stable, with limited room for new supply. Future incremental supply will depend mainly on the commissioning of replacement capacity and the progress of technical renovation projects.
According to Mysteel statistics, the average spread between primary aluminium and aluminium scrap in August was RMB 867 per tonne, widening by RMB 262 per tonne compared to July. On the one hand, the overall upward movement in aluminium prices prompted scrap traders to shift from holding back to selling; as traders became more willing to sell in line with rising prices, the supply of aluminum scrap increased.
On the other hand, August coincided with the traditional consumption off-season; operating rates at downstream processing enterprises were relatively low, and procurement demand for aluminium scrap was weak. This pattern of rising supply and weakening demand caused scrap prices to lag significantly behind primary aluminium prices, further widening the primary-scrap spread.