East China aluminium trades improve but supply overhang persists

SHANGHAI, Sep 26 (SMM) – Spot aluminium trades improved from the previous day on Wednesday September 26, but supply still exceeded demand across the market, SMM learned.

Purchasing enthusiasm among downstream consumers grew as some stockpiled for the National Day holiday. Supplies across the market remained sufficient.

The SHFE aluminium contract for October delivery fell in the morning trading hours.

Most transactions in Shanghai were heard at 14,520-14,530 yuan/mt with discounts of 40-30 yuan/mt against the SHFE October contract. Transactions were mostly done at 14,520-14,530 yuan/mt in Wuxi and 14,540-14,550 yuan/mt in Hangzhou.

Trades in the south, however, was sluggish as downstream consumers held back from making purchases.

Most transactions were heard at 14,620-14,630 yuan/mt across the southern markets with premiums of 60-70 yuan/mt over the SHFE October contract.

While the week-long holiday approaches, stockpiling enthusiasm among downstream consumers was not high, some traders told SMM. This weighed on sellers and drove them to offer lower premiums to attract buyers.