South China Aluminum: Spot Transactions Muted with Financial Pressures

SHANGHAI, Dec. 28 (SMM) – The most active SHFE aluminum contract prices surged to RMB 15,925/mt in the morning session on Wednesday, and stabilized above RMB 15,900/mt due to lack of upward momentum. Some traders were still reluctant to move goods in spot market in South China. Traders were pessimistic towards market outlook over sluggish downstream consumption and with worries on aluminum prices. Spot aluminum prices edged up slightly in East China, while main transactions were done at RMB 16,010-16,030/mt in South China, close to prices on previous trading day. With the financial strains by month end, and low purchases from downstream buyers caused by a lack of orders, traders reduced inventories and transactions were modest.