SHANGHAI, Oct 10 (SMM) – Spot aluminium discounts across eastern Chinese markets on Wednesday October 10 narrowed from the previous day as prices of Shanghai futures fell in the morning trading hours, SMM research found.
The SHFE contract for October delivery fell and steadied at closing time in the morning. Most spot transactions in Shanghai were done at 14,360-14,400 yuan/mt with discounts of 30-20 yuan/mt against the October contract, compared to 40-30 yuan/mt in the previous day. Transactions were mostly concluded at 14,360-14,400 yuan/mt in Wuxi and 14,400-14,420 yuan/mt in Hangzhou.
In Guangdong, most transactions were heard at 14,420-14,440 yuan/mt with the Guangdong-Shanghai spread at 70-50 yuan/mt.
Lower prices also sidelined downstream consumers and this weighed on trading activity across the markets.
Processing fees for billet stayed flat from the prior day in Guangdong, with those for 90 mm at 300-360 yuan/mt. Processing fees were heard at 260-300 yuan/mt for 100/110/127 mm and at 260-300 yuan/mt for 120/150/152/178 mm.