East China Aluminum: Price Divergence Intensifies, Few Deals Expected Since Tomorrow

SHANGHAI, Jan. 17 (SMM) – Traded prices of spot aluminum in Shanghai were between RMB 16,040-16,100/mt on Tuesday, with discounts of RMB 90-150/mt over the SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 16,100-16,120/mt in Shanghai. Traded prices of spot aluminum in Wuxi were between RMB 16,000-16,040/mt. Downstream consumption in spot aluminum markets was sluggish, with only a few middlemen replenishing stocks ahead of the holiday. Some goods holders eager for cash lowered prices, leading spot discounts over the SHFE current-month aluminum price to expand to RMB 150/mt, while others suspended businesses or held prices firmly at RMB 16,100/mt. Despite limited increase in spot aluminum prices, market players were positive toward post-holiday market. Transactions will be barely reported since tomorrow.