East China Aluminum: Spot Hits New Yearly Low on Futures Plunge, Weak Demand

SHANGHAI, Nov. 2 (SMM) -- Traded prices of spot aluminum in Shanghai were between RMB 16,180-16,220/mt on November 2nd, with premiums of RMB 10-40/mt over the SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 16,230-16,250/mt in Shanghai. Traded prices of spot aluminum in Wuxi were between RMB 16,140-16,180/mt. After LME aluminum prices plunged overnight, SHFE aluminum prices gapped lower today and fluctuated near RMB 16,100/mt. Though some goods holders were unwilling to move goods at lower prices, spot premiums over the SHFE current-month aluminum price failed to expand due to the low downstream buying interest. Spot aluminum was traded at a new yearly low today. However, as only a few downstream buyers and middlemen replenished their stocks at lower prices, market transactions were quite limited.