Aluminium Ingot prices witnessed a significant downturn across major markets during the pre-Christmas week reflecting subdued trading activity. The Chinese market experienced a steeper decline, primarily driven by weak downstream demand from manufacturers. Meanwhile, US prices recorded a modest drop, largely attributed to market anxiety surrounding the Federal Reserve's upcoming interest rate decisions. Despite these short-term headwinds, the long-term outlook for Aluminium Ingot remains optimistic, fueled by the expected slowdown in Chinese production, robust global demand, and ongoing infrastructure investments in various regions.

In China, Aluminium Ingot prices decreased by 2.5% in the week ending December 20. Weak demand from downstream customers, coupled with steady supplier sales, contributed to the price decline. The situation was further complicated by concerns over potential US trade tariffs and a slowdown in production growth, stemming from rising input costs and ongoing emission reduction initiatives. Adding to the downward pressure, alumina, a key raw material, witnessed a price plummet during the same period.

Despite stable alumina production rates nationwide, demand has softened, particularly in Southwest China. The previously tight alumina supplies have begun to show signs of easing. Market activity in spot alumina trading has decreased, leading to lower average prices for sporadic deals. Regional markets, including Shanxi and Henan, have also reported modest declines in spot market prices.

In the US, Aluminium Ingot prices fell by 1.6% in the same period. Uncertainty surrounding the Federal Reserve's interest rate decisions and a general pullback in commodity markets created a cautious trading environment. The market faced additional pressure from increased Chinese aluminum exports, triggered by the expiration of export tax rebates. Transportation costs have also played a role, with trans-Pacific Ocean container freight rates from Asia to the United States declining in early December, as importers rushed to complete shipments ahead of potential labor issues at US ports expected in January.

However, the market outlook for Aluminium Ingot isn't entirely bearish. A positive development comes from Chinalco Aluminum Foil's new venture in Kunming, which is expected to stimulate future demand for Aluminium Ingot in China. Market participants maintain an optimistic long-term outlook for Aluminium Ingot, supported by several key factors: an anticipated slowdown in expansion of Chinese production, strong global demand, and continued infrastructure investments across various regions.

With the festive season approaching, Aluminium Ingot prices are poised for significant impact. The upcoming winter celebrations, along with technological advancements in Asian countries, point to a promising outlook for the Aluminium Ingot industry. ChemAnalyst predicts continued growth in the sector, with expectations of steady price increases.