South China Aluminum Price: Prices Extend Gains on Short Supply

SHANGHAI, Jun. 6 (SMM) – SHFE 1309 aluminum contract prices climbed above RMB 14,900/mt on Thursday, boosting sentiment in spot market. Tight supply in Guangdong, combined with brisk consumption by downstream producers and middlemen, drove mainstream traded prices in Guangdong up to RMB 15,250-15,270/mt, a premium of RMB 330/mt over Shanghai. Higher prices in Guangdong enticed some traders in east China to ship goods to south China, but supply in the region remained tight. Some traders are now worried that large arrivals of shipments into Guangdong following the three-day holiday will narrow price gap between Guangdong and Shanghai. SMM, however, believes that aluminum prices will remain high next week as it will take a week to ship goods to the region and as downstream producers still need to restock during the two trading days next week.