South China Aluminum: Tight Cash Flow Limited Spot Transactions

SHANGHAI, Dec. 29 (SMM) – The most active SHFE aluminum contract prices moved up after opening lower on Thursday, and fluctuated between RMB 15800-15860/mt all day for the lack of upward momentum. Prices for spot aluminum ingot in Nanhai were between RMB 15,950-15,980/mt. Most traders quoted with spot discounts of RMB 10-20/mt. Transactions were quiet in the market. According to traders, the tight liquidity confronted local banks, which resulted in financial pressures for enterprises, was a major reason for limited transactions. Most traders believe the situation is not likely to improve until January 4th, after the New Year's holiday.