East China Aluminum: Spot Price Plunges, Downstream Stock Building Seen

SHANGHAI, Sept. 23 (SMM) – Traded prices of spot aluminum in Shanghai were between RMB 17,050-17,090/mt on September 23rd, with premiums of RMB 80-150/mt over SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 17,100-17,140/mt. Traded prices of spot aluminum in Wuxi were between RMB 17,040-17,080/mt. Most active SHFE aluminum contract gapped lower by over 2% this morning, and SMM aluminum price plunged by RMB 450/mt in response. SHFE current-month aluminum price temporarily climbed to RMB 17,000/mt, which helped mainstream price gain, narrowing spot premiums over the contract  to within RMB 100/mt. The wait-and-see sentiment was strong among both suppliers and buyers. Only traders with sufficient capital moved goods at lower prices, which attracted some downstream enterprises to build up stocks at lower cost. However, as quotations rose, transactions were hardly reached.