East China Aluminum: Prices Hit A New for the Year

SHANGHAI, Jul. 10 (SMM) – Mainstream traded prices for spot aluminum in Shanghai were RMB 14,320-14,340/mt on Wednesday, a discount of RMB 0-10/mt and premium of RMB 0-10/mt over SHFE 1307 aluminum contract prices. Low-iron aluminum was traded around RMB 14,490/mt. The most active SHFE aluminum contract edged down, souring market sentiment. Traders rushed to sell for cash, but downstream producers and middlemen held to the sidelines, sending prices down to RMB 14,320/mt, the lowest in more than three years. Prices are expected to fall further given the slowdown in the Chinese economy and severe overcapacity in aluminum industry.