SHANGHAI, Sep 5 (SMM) – The price spread of primary aluminium between Henan province and Shanghai narrowed to some 90 yuan/mt as of Wednesday September 5, from 140 yuan/mt at the end of August.

This followed after aluminium processing plants in Gongyi, Henan resumed production from environmental curbs during July-August. This higher demand bolstered aluminium prices in the province.

Price of A00 aluminium ingot grew over 100 yuan/mt from late August to 14,590-14,610 yuan/mt as of September 5. This compared to a low of 13,760 yuan/mt in mid-July, SMM assessed.

Orders for September fell year on year across most aluminium processors even as environmental restrictions eased. Downstream demand may underperform relative to expectations in the traditional high season of September-October, SMM believes.