SHANGHAI, Sep 25 (SMM) – Aluminium spot discounts in east China slightly widened on the first trading day after the Mid-Autumn Festival as the market was oversupplied amid sellers’ keenness to offload cargoes, SMM learned.
Buyers, however, took a wait-and-watch stance. This exacerbated the supply overhang across the market.
The SHFE aluminium contract for October delivery fell in the morning trading hours.
Most transactions in Shanghai were heard at 14,540-14,550 yuan/mt with discounts of 50-30 yuan/mt against the SHFE October contract. This compared to discounts of 30-20 yuan/mt seen on Friday, the last trading day before the public holiday. Transactions were mostly heard at 14,540-14,550 yuan/mt in Wuxi and 14,550-14,570 yuan/mt in Hangzhou.
Supply was also quite sufficient in the south as sellers there were keen to let their cargoes go, while downstream consumers have yet to begin to stockpile for the week-long Nation Day holiday, starting from October 1. Overall trading in the southern market was thin.
Most transactions in Guangdong were heard at 14,650-14,670 yuan/mt with Guangdong-Shanghai spread at 120 yuan/mt.