SHANGHAI, Oct 22 (SMM) – Spot aluminium discounts narrowed across the Shanghai market on the first trading day of the week as prices of futures fell in the morning trading hours, SMM research found.
The SHFE contract for November delivery initially fell before it climbed in the morning trading hours. Spot discounts in Shanghai were heard at 50-70 yuan/mt against the SHFE 1811 contract, compared with 90-70 yuan/mt on Friday morning.
Most transactions occurred at 14,100-14,120 yuan/mt in Shanghai and Wuxi, and at 14,130-14,140 yuan/mt in Hangzhou.
When prices of futures climbed, most traders lowered offers as they were keen to offload cargoes. Downstream consumers, however, took a wait-and-watch stance.
Transactions in Guangdong were mostly heard at 14,110-14,130 yuan/mt with Guangdong-Shanghai spreads narrowing to 10-20 yuan/mt, from 20-30 yuan/mt on Friday morning.
The Guangdong market saw ample supplies today, with brisk trades before prices began to climb.
There was little change in processing fees for billet in Guangdong. Fees were heard at 360-400 yuan/mt for 90 mm, 340-380 yuan/mt for 100/110/127 mm and 340-380 yuan/mt for 120/150/152/178 mm.