South China Aluminum: Tight Cash Flow Depressed Downstream Buying Interest

SHANGHAI, Sept. 27 (SMM) – Despite firm movements in the SHFE aluminum market after a high open on Tuesday, tight cash flow pressures by the end of the quarter depressed downstream buying interest, dragging down spot prices. Mainstream transactions were done between RMB 17,050-17,090/mt, and spot premiums over Shanghai dropped to RMB 0/mt from premiums. Further price rallies in the SHFE aluminum market in the afternoon reduced cargo-holders’ enthusiasm to sell goods at low prices, resulting in a strong wait-and-see attitude. Overall trading sentiment was moderate.