East China Aluminum: Spot Discounts Remain Large with Surging Inventories and Weak Consumption

SMM Insight 02:00:03PM Jan 30, 2012 Source:SMM

SHANGHAI, Jan. 30 (SMM) – Traded prices of spot aluminum in Shanghai were between RMB 16,000-16,040/mt on Monday, with discounts of RMB 120-160/mt over the SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 16,050-16,090/mt in Shanghai. Traded prices of spot aluminum in Wuxi were between RMB 15,950-15,980/mt. Since large amount of spot aluminum arrived during the Chinese New Year holiday, while most downstream enterprises will not resume production until after the Lantern Festival, trading sentiment was low on the first trading day following the Chinese New Year. Spot discounts over the SHFE current-month aluminum price remained above RMB 100/mt. Thus, some traders in futures market were willing to go short for clearance. Meanwhile, in spot markets, many middlemen bought goods at lower prices.

Key Words:  East China   aluminum prices 

East China Aluminum: Spot Discounts Remain Large with Surging Inventories and Weak Consumption

SMM Insight 02:00:03PM Jan 30, 2012 Source:SMM

SHANGHAI, Jan. 30 (SMM) – Traded prices of spot aluminum in Shanghai were between RMB 16,000-16,040/mt on Monday, with discounts of RMB 120-160/mt over the SHFE current-month aluminum price. Low-iron aluminum was traded between RMB 16,050-16,090/mt in Shanghai. Traded prices of spot aluminum in Wuxi were between RMB 15,950-15,980/mt. Since large amount of spot aluminum arrived during the Chinese New Year holiday, while most downstream enterprises will not resume production until after the Lantern Festival, trading sentiment was low on the first trading day following the Chinese New Year. Spot discounts over the SHFE current-month aluminum price remained above RMB 100/mt. Thus, some traders in futures market were willing to go short for clearance. Meanwhile, in spot markets, many middlemen bought goods at lower prices.

Key Words:  East China   aluminum prices