East China Aluminum: Plunging SHFE Aluminum Triggers Panic Selling

SHANGHAI, Jun. 18 (SMM) – Mainstream traded prices for spot aluminum in Shanghai were RMB 14,660-14,680/mt on Tuesday, RMB 10-30/mt higher than SHFE 1307 aluminum contract prices. Low-iron aluminum was traded around RMB 14,820/mt. The plunge in SHFE 1309 aluminum contract prices triggered panic selling among spot aluminum traders, driving traded prices in Shanghai down from yesterday’s RMB 14,820/mt to RMB 14,670/mt. Downstream producers and middlemen purchased only as needed, capping prices in east China under RMB 14,700/mt. Bearish sentiment should continue to dominate the market for the remainder of the month.