SHANGHAI, Aug 9 (SMM) – Trading in the spot aluminium market in east China was thinner on Thursday August 9 than that in the previous day as surging prices jeopardised downstream consumers’ buying interest, SMM learned.
The SHFE August contract jumped some 300 yuan/mt from overnight as of noon, bolstered by the industrial action at Alcoa’s Pinjarra alumina refinery in Western Australia.
Spot discounts were heard at 40-30 yuan/mt in the east. Most transactions were done at 14,630-14,660 yuan/mt in Shanghai, at 14,620-14,660 yuan/mt in Wuxi and at 14,640-14,660 yuan/mt in Hangzhou.
Sellers across the region were keen to offload their cargoes but also held their offers firm. Several major traders remained keen to make purchases while others were cautious.
Similar selling enthusiasm was also seen in the south but downstream customers showed lukewarm interest. Activity among traders injected some liquidity to the market.
Most transactions in Guangdong were heard at 14,760-14,770 yuan/mt with the Guangdong-Shanghai price spread at 140 yuan/mt.
Processing fees for aluminium billet in Guangdong held steady and the trading turned better than the previous day. Fees for 90 mm materials were at 410-450 yuan/mt, fees for 120 mm products at 390-430 yuan/mt, and fees for 150/178 mm at 350-390 yuan/mt.