SHANGHAI, Apr 27 (SMM) – Transactions of cargoes with invoices for May dominated the spot aluminium market in east China on Friday April 27, as market participants rushed to take advantage of the last trading day before the value-added tax (VAT) cut comes into effect. The SHFE 1805 contract rose in the morning.
Shanghai saw most transactions done at 14,410-14,420 yuan/mt with premiums of 0-10 yuan/mt against the 1805 contract. Transactions in Wuxi and Hangzhou were mostly heard at 14,410-14,420 yuan/mt and 14,460-14,470 yuan/mt, respectively.
Sellers in east China saw stable shipments while traders stockpiled a small amount. Downstream consumers purchased on demand for the Labour Day holiday.
In the Guangdong market, cargoes with invoices for April mostly traded at 14,470-14,480 yuan/mt with the Guangdong-Shanghai price spreads widened to 60 yuan/mt.
Overall trading in Guangdong was thin as sellers held back. Downstream consumers were reluctant to stockpile for the holiday as many of them purchased large amounts when aluminium futures prices surged last week.
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