SHANGHAI, Oct 8 (SMM) – Spot aluminium sellers in south China were keen to offload their cargoes on the first trading day after the week-long National Day break as stocks across local warehouses sharply grew during the break, SMM research found.
Overall trading across southern markets, however, was thin as tepid orders limited restocking interest across local downstream consumers.
SMM data as of Monday October 8 showed that primary aluminium stocks in Nanhai, Guangdong, increased by 36,000 mt, or 17.7%, from Thursday September 27, marking the largest gain among eight major Chinese consumption areas.
The SHFE contract for October delivery edged down in the morning trading hours.
Most spot transactions in Guangdong were heard at 14,340-14,360 yuan/mt with Guangdong-Shanghai spread at 70 yuan/mt.
Across the Guangdong market, processing fees for billet 90 mm were heard at 340-380 yuan/mt with those for 110/120 mm at 320-340 yuan/mt and those for 150/178 mm at 310-350 yuan/mt.
Sellers in eastern markets, however, held their offers firm as limited cargoes arrived at the local warehouses during the break. Post-holiday restocking enthusiasm among downstream consumers in east China was mild and less robust than last year.
Most transactions in Shanghai were heard at 14,280-14,300 yuan/mt with discounts of 30-20 yuan/mt. Transactions were mostly done at 14,280-14,300 yuan/mt in Wuxi and 14,290-14,300 yuan/mt in Hangzhou.