SHANGHAI, Jun 28 (SMM) – Traders in the east China aluminium market were keen to purchase cargoes on Thursday June 28 as spot discounts widened, SMM learned. Such high buying interest also spurred trading liquidity.
In Shanghai, spot discounts stood at 90-80 yuan/mt against the SHFE 1807 contract with most transactions done at 14,010-14,040 yuan/mt. The discounts were about 80-70 yuan/mt a day earlier. Transactions in Wuxi and Hangzhou were heard at 14,010-14,040 yuan/mt and 14,030-14,060 yuan/mt, respectively.
Producers in east China were also keen to offload their cargoes to repay loan interest towards the mid-year while downstream consumption was relatively weak. This widened the spot discounts.
Trading in Guangzhou, however, was thin as buyers stood on the sidelines due to cash woes despite keen sellers.
In Guangdong, transactions were mostly done at 14,100-14,130 yuan/mt with Guangdong-Shanghai price spread narrower at 100 yuan/mt.