Higher spot aluminium prices sideline downstream consumers

SHANGHAI, May 27 (SMM) – Downstream buyers for spot aluminium across east and south China stood on the sidelines in the morning of Monday May 27, as prices rose sharply.

Trades in Shanghai occurred at 14,340-14,350 yuan/mt, before following prices of futures lower to 14,320-14,340 yuan/mt. This was up about 100 yuan/mt from Friday morning, and widened the premium over the front-month June contract on the Shanghai Futures Exchange to 20-30 yuan/mt.

Spot deals occurred at 14,320-14,340 yuan/mt in Wuxi and 14,370-14,380 yuan/mt in Hangzhou this morning.

Spot aluminium traded at 14,420-14,440 yuan/mt in Guangdong this morning, with the spread with Shanghai prices at 100 yuan/mt.

Despite normal trades across southern markets, trading activity across eastern markets remained brisk as some downstream buyers restocked after the weekend.