South China Aluminum: Downstream Buying Interest Sluggish, Exports to be Depressed

SHANGHAI, Oct. 12 (SMM) – Although the most active SHFE aluminum contract rallied firstly among metals, market concerns caused by expected appreciation of Chinese currency were not alleviated. As most of aluminum processors in south China are export-oriented, Renminbi appreciation will weaken price advantages of their products, and this will significantly affect exports, which will undoubtedly add pressure to the already weak consumption. Downstream buying interest in the spot market was depressed, while cargo holders were reluctant to sell goods at low prices, leaving strong wait-and-see sentiment in the market. Traded prices of spot aluminum in south China were RMB 17,040-17,060/mt. Only a few downstream buyers in urgent need of goods were willing to purchase, with limited transactions done in general.