Spot aluminium prices in Guangdong remain weak despite declining inventory

SHANGHAI, May 18 (SMM) – Spot aluminium prices in Guangdong remained about 10-30 yuan/mt higher than those in Shanghai on Friday May 18, SMM learned.

Such a stable price spread hinted at the weak performance of spot aluminium in south China despite support from falling inventories.

Aluminium stocks in Nanhai, Guangdong shrank 25,000 mt week on week to stand at 368,000 mt as of Thursday May 17, according to SMM data. The decline, at 6.4%, compared with a 1.5% drop a week ago.

The SHFE 1806 contract traded rangebound on Friday morning.

Transactions in Guangdong were mostly done around 14,660 yuan/mt while transactions in Shanghai were done at 14,630-14,650 yuan/mt with discounts of 90-80 yuan/mt against the SHFE 1806 contract. In Wuxi and Hangzhou, traded prices were heard at 14,630-14,640 yuan/mt and 14,670-14,680 yuan/mt, respectively.

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