Metals

Aluminum Ingots

Aluminum ingots are cast blocks of primary aluminum produced from smelting alumina via electrolysis. They are remelted by foundries and fabricators to produce automotive parts, construction materials, and consumer goods. Standard ingots are 99.7% purity, traded at LME prices plus regional premiums.

  • P1020 (99.7%)
  • High Purity (99.85%)
  • A7 Ingot
  • Foundry Alloy
  • CIF
  • FOB
  • CFR
At a glance

Aluminum Ingots, in brief.

Common origins
  • China
  • Russia
  • India
  • United Arab Emirates
  • Canada
Common destinations
  • Japan
  • United States
  • Germany
  • South Korea
  • Italy
Grades and specifications
  • P1020 (99.7%)
  • High Purity (99.85%)
  • A7 Ingot
  • Foundry Alloy
Incoterms
  • CIF
  • FOB
  • CFR
Unit of measure
  • Metric Tons
Price drivers

What moves Aluminum Ingots pricing

Aluminum prices off LME 3-month plus physical premiums: Midwest Premium (US), Rotterdam Duty Paid Premium (Europe), Main Japanese Port Premium (Asia). Power costs dominate marginal production economics: about 30-40% of all-in cost is electricity. Chinese smelting capacity and the Yunnan dry-season hydropower constraints periodically swing global supply. EU CBAM (Carbon Border Adjustment Mechanism) is creating durable premium dispersion between low-carbon and conventional aluminum.

Contract structure

How Aluminum Ingots cargoes are priced and settled

Standard aluminum P1020A ingots are 22-23 kg with 99.7% minimum purity. Cargoes ship in 25-tonne containers or bulk parcels of 500-2,000 tonnes. Pricing is LME M+1 average plus regional premium. Annual contracts negotiate the premium through Q4 of the prior year. Increasingly, low-carbon premiums (for hydro-powered smelter material) are negotiated separately.

Quality and disputes

Aluminum Ingots specifications and dispute practice

P1020A is the global standard at 99.7% Al, with iron and silicon as primary tramp elements. Disputes commonly arise around iron content above 0.20%, silicon above 0.10%, and physical defects (drosses, hot cracks). LME-registered brand status is critical: non-registered brands trade at $40-80/tonne discount in many markets.

Trade flows

Where Aluminum Ingots comes from and where it goes

Top exporters: China (despite a 15% export tax on primary aluminum, exports continue via re-export of value-added forms), UAE (EGA), India (Vedanta, Hindalco), Russia (Rusal, sanctions-affected), Bahrain (ALBA). Top importers: US (post-Section 232 tariff regime), Japan, Korea, Germany, Italy. Mexican smelting and rolling has grown as a tariff-bypass route into the US.

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