SHANGHAI, Sep 28 (SMM) – Spot aluminium sellers in Guangdong held back from offloading their cargoes on Friday September 28 as tumbles in aluminium prices and the narrow Guangdong-Shanghai price spreads eroded their profits, SMM research found.
The SHFE aluminium contract for November delivery climbed from early lows in the morning trading session.
Most transactions were heard at 14,300-14,320 yuan/mt in Guangdong with Guangdong-Shanghai spreads at 40 yuan/mt.
Buying interest among traders and downstream consumers in Guangdong was low and this left the market in quietness.
Recent declines in aluminium prices grew processing fees for billet. Across the Guangdong market, fees for 90 mm were heard at 360-420 yuan/mt with those for 110/120 mm at 340-380 yuan/mt and those for 150/178 mm at 340-380 yuan/mt.
Most transactions in Shanghai were heard at 14,270-14,280 yuan/mt with discounts of 40-30 yuan/mt against the October contract. Transactions were mostly done at 14,270-14,280 yuan/mt in Wuxi and 14,280-14,300 yuan/mt in Hangzhou.