Falling futures prices sideline spot aluminium buyers

SHANGHAI, Jun 25 (SMM) – Buyers in the spot aluminium markets in east and south China held back from purchasing on Monday June 25 as prices of futures fell in the morning, SMM learned.

Despite active sellers, trading was thin in both regions.

Transactions in Shanghai were mostly heard at 14,080-14,110 yuan/mt with discounts of 50-40 yuan/mt against the SHFE 1807 contract. In Wuxi and Hangzhou, transactions were done at 14,080-14,110 yuan/mt and 14,130-14,140 yuan/mt, respectively.

In Guangdong, most transactions were heard at 14,200-14,230 yuan/mt with Guangdong-Shanghai price spreads at about 140 yuan/mt. Such relatively wide price spread was due to better orders at downstream processers in Guangdong than those in east China.

However, raw material inventory at downstream processers in south China was high as they purchased large amounts when aluminium prices temporarily stabilised last week.