Spot aluminium trades weaken in China as buyers hold back

SHANGHAI, Apr 25 (SMM) – China’s spot aluminium market saw thin trades on Wednesday April 25, SMM learned. The SHFE 1805 contract climbed up slightly in the morning.

For cargoes with invoices for April, transactions in the Shanghai market were mostly heard at 14,410-14,430 yuan/mt with premiums at 40-50 yuan/mt against the 1805 contract. Transactions in Wuxi and Hangzhou were mostly heard at 14,410-14,430 yuan/mt and 14,410-14,460 yuan/mt, respectively. Cargoes with invoices for May traded at 14,370-14,390 yuan/mt, flat against the 1805 contract.

Overall trading was lacklustre in east China. Sellers saw stable shipments while brokers and downstream consumers adopted a watch-and-wait approach.

In the Guangdong market, cargoes with invoices for April mostly traded at 14,400 yuan/mt while those with invoices for May traded at 14,380-14,390 yuan/mt. The Guangdong-Shanghai price spread remained at 10 yuan/mt.

Despite ample supply, overall trading in south China was thin as brokers and downstream consumers refrained from purchases. Processing fees for aluminium rods in the south also surged to over 600 yuan/mt with declining deliveries.

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