Spot aluminium buyers hold back after stockpiling

SHANGHAI, May 11 (SMM) – Overall trading across spot aluminium markets in east and south China weakened on Friday May 11 as downstream consumers became quiet following the stockpiling a day earlier.

The SHFE 1805 contract traded rangebound within a narrow range in the morning.

In east China, for cargoes with May invoices, transactions were mostly heard at 14,570-14,590 yuan/mt with discounts of 20-10 yuan/mt against the SHFE 1805 contract. Transactions in Wuxi and Hangzhou were mostly done at 14,570-14,590 yuan/mt and 14,600-14,610 yuan/mt, respectively. Smelters were reluctant to let go their cargoes while traders were active in selling. Downstream consumers turned quiet after stockpiling the previous day.

In Guangdong, most transactions of cargoes with May invoices were heard at 14,580-14,600 yuan/mt with Guangdong-Shanghai price spreads at about 20 yuan/mt. Sellers were keen to offload while downstream consumers held back from buying. The overall trading in south China was thinner than a day ago but better than that in east China.

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