Active buying in aluminium market narrows spot discounts

SHANGHAI, Feb 27 (SMM) – Buying was active in the aluminium physical market on Tuesday February 27 with narrowing spot discounts, SMM learned.

In Shanghai and Wuxi, transactions were heard at 13,970-14,020 yuan/mt with spot discounts of 200-180 yuan/mt against the SHFE 1803 contract. Trades in Hangzhou were seen at 13,950-13,970 yuan/mt while those in Guangdong were seen at 14,040-14,090 yuan/mt.

Sellers were reluctant to let go many cargoes as major traders returned to the market sourcing actively after Chinese New Year, according to sources.

On aluminium rod, trading was thin in Guangdong as downstream customers would only be back from holiday around March 5. Treatment charges stayed firm at above 300 yuan/mt on low inventories.   

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