East China Aluminum: Supply of Low-Priced Goods Up, Buying Interest Limited

SHANGHAI, Oct. 25 (SMM) – Spot aluminum was mainly traded between RMB 15,230-15,270/mt in Shanghai on Thursday, with discounts between RMB 110-70/mt. Low-iron aluminum was traded near 15,330/mt. The SHFE 1212 aluminum contract was resilient to declines, but rose slower than other base metals. Consumption of spot aluminum was persistently sluggish and pressure from overcapacity grew. Cargo holders were eager to move goods at lower prices due to cash tightness at the month’s end, but downstream producers purchased only limitedly at low prices, causing spot discounts to expand to RMB 100/mt. Overall trading was light.