SHANGHAI, Oct 9 (SMM) – Spot aluminium discounts across eastern Chinese markets on Tuesday October 9 widened from the previous day though sellers continued to hold offers firm and traders became more willing to purchase for long-term contracts, SMM research found.
The SHFE contract for October delivery traded rangebound in the morning. Most spot transactions in Shanghai were done at 14,460-14,470 yuan/mt with discounts of 40-30 yuan/mt against the October contract, compared to 30-20 yuan/mt in the previous day. Transactions were mostly done at 14,460-14,470 yuan/mt in Wuxi and 14,470-14,480 yuan/mt in Hangzhou.
In Guangdong, most transactions were heard at 14,530-14,550 yuan/mt with Guangdong-Shanghai spread unchanged at 70 yuan/mt.
Sellers across southern markets continued to be enthusiastic about offloading while local traders and downstream consumers took stood on the sidelines. A major trader made large purchases today.
The Guangdong market saw poor trades for billet today as most processors completed restocking. Sellers had to lower offers.
Processing fees for 90 mm billet were heard at 300-360 yuan/mt in Guangdong with those for 100/110/127 mm at 260-300 yuan/mt and those for 120/150/152/178 mm at 260-300 yuan/mt.