East China Aluminum: Supply Sufficient, Premiums Drop below RMB 100/mt

SHANGHAI, Oct. 10 (SMM) – Traded prices of spot aluminum in Shanghai were between RMB 17,000-17,040/mt on October 10th, with premiums of RMB 80-130/mt over the SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 17,050-17,070/mt. Traded prices of spot aluminum in Wuxi were between RMB 17,000-17,040/mt. The SHFE current-month aluminum contract opened higher to test RMB 16,900/mt. Spot prices, however, failed to follow the climb due to significant increase of goods arrivals following the National Day holiday, as well as the approaching change in the current-month aluminum contract. Spot premiums over the current-month contract also dropped below RMB 100/mt as goods holders were actively lowering stocks. Downstream stock replenishment was only made as-needed due to the prevailing bearish sentiment, thereby dragging down mainstream traded prices to near RMB 17,000/mt. High-grade supplies in the market nevertheless remained scarce. Market transactions slightly increased from pre-holiday trading.