South China Aluminum: Prices Fall Less on Limited Supply

SHANGHAI, Nov. 10 (SMM) – Most active SHFE aluminum contract opened lower and once fell below RMB 16,000/mt on Thursday. However, spot aluminum prices fell less in South China compared to other regions, because cargo holders were reluctant to move goods at low prices due to low inventories at hand. Main transactions were done at RMB 16,220-16,240/mt. Although the bottom price created new yearly low, the drop was limited, in particular, spot premiums over Shanghai expanded to around RMB 200/mt. Downstream buyers continued to purchase as needed, leaving transactions modest in the market.