SHANGHAI, May 14 (SMM) – Spot aluminium inventories in Guangdong fell 16,000 mt as of Monday May 14 from a week ago with fewer deliveries, SMM learned.
Inventories declined as aluminium producers raised production of molten aluminium and as busbars in newly added aluminium capacities utilised more aluminium, SMM believed.
On the morning of Monday May 14, the SHFE 1805 contract rose from lows of 14,505 yuan/mt to 14,535 yuan/mt.
In east China, transactions of cargoes with May invoices were mostly heard at 14,460-14,510 yuan/mt with discounts of 30-20 yuan/mt against the SHFE 1805 contract. Transactions in Wuxi and Hangzhou were done at 14,460-14,510 yuan/mt and 14,480-14,530 yuan/mt, respectively. A major aluminium plant made some procurement earlier in the morning.
In the Guangzhou market, transactions of cargoes with May invoices were mostly heard at 14,510-14,530 yuan/mt following the movement of futures prices. The Guangdong-Shanghai price spreads remained around 40 yuan/mt. Downstream consumers purchased on demand while traders made limited transactions. Overall trades were better from last Monday.
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