East China Aluminum: Trading Brisk on Increased Pre-Holiday Purchases

SHANGHAI, Apr. 26 (SMM) – Spot aluminum was traded at RMB 14,520-14,530/mt in Shanghai on Friday, a discount of RMB 80-90/mt over SHFE 1305 aluminum contract. Low-iron aluminum was traded around RMB 14,680/mt. SHFE 1305 aluminum contract climbed above RMB 14,600/mt, boosting market sentiment. Downstream producers increased purchases on the last trading day before the Chinese May Day holiday. Prices in Guangdong were nearly RMB 200/mt higher than in Shanghai, enticing some middlemen to buy goods in Shanghai and then sell them in Guangdong. In this context, traders held offers firm at RMB 14,520/mt. Aluminum ingot offered at RMB 14,510/mt was quickly sold out, but trading was down when price rose to RMB 14,530/mt. Overall trading was brisk.