SHANGHAI, Nov 21 (SMM) – Spot aluminium discounts against the SHFE 1812 contract were heard at 50-40 yuan/mt on Wednesday November 21, wider than 40-30 yuan/mt in the previous day after the spread between the December and January contracts flipped into a backwardation.
The SHFE 1812 contract inched up in morning trades. Most transactions were done at 13,710-13,720 yuan/mt in Shanghai and Wuxi and 13,720-13,740 yuan/mt in Hangzhou.
Across eastern markets, sellers remained keen to offload their cargoes while the recent weakness in prices sidelined downstream consumers. Backwardation in the nearby spread fuelled transactions between traders.
The slight gains in prices of futures grew confidence among downstream consumers in Guangdong and a major buyer made large purchases today. Most transactions were heard at 13,790-13,800 yuan/mt in Guangdong.