East China Aluminum: Order Scarce among Goods Holders on Significant Drop in Demand

SHANGHAI, Oct. 14 (SMM) – Traded prices of spot aluminum in Shanghai were between RMB 16,900-16,930/mt on October 14th, with premiums of RMB 20-50/mt over the SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 17,000-17,020/mt. Traded prices of spot aluminum in Wuxi were between RMB 16,880-16,930/mt. Tight capital supply among downstream processors and weak terminal demand have led to an over 20% reduction in production orders. Those medium-to-small enterprises have even been pushed to the brink of collapse. The significant drop in aluminum demand also led to a prevailing bearish market sentiment. Though slight spot premiums were maintained, purchase orders were hardly received among goods holders whose aluminum stocks have seen increases following the National Day holiday. Market deals were extremely limited as a result.