Lower aluminium prices sideline eastern spot buyers

SHANGHAI, Nov 28 (SMM) – Downstream consumers across east-China spot aluminium markets took a wait-and-watch stance on Wednesday morning as prices of futures fell for the third consecutive trading day.

The SHFE 1812 contract slid in morning trades. Spot discounts in Shanghai were heard at 40-30 yuan/mt against the SHFE 1812 contract, compared to 50-40 yuan/mt in the previous day. Most spot transactions occurred at 13,620-13,640 yuan/mt in Shanghai and Wuxi and 13,660-13,680 yuan/mt in Hangzhou.

Across eastern markets, sellers were keen to offload cargoes while transactions between traders were brisk.

Most transactions were heard at 13,670-13,690 yuan/mt in Guangdong with the spreads with Shanghai at 50 yuan/mt.

Sellers in Guangdong remained unwilling to let their cargoes go. The Aluminum Corporation of China Limited (Chalco) made purchases today, which improved overall trading activity in Guangdong from the start of the week.