SHANGHAI, Jan 30 (SMM) – Spot aluminium transactions across east-China markets thinned in the morning of Wednesday January 30 as the rebound in prices of futures eroded purchasing enthusiasm among downstream consumers.
The front-month aluminium contract on the Shanghai Futures Exchange held onto most of overnight gains in morning trade. Spot discounts in Shanghai were heard at 60-50 yuan/mt against the SHFE 1902 contract, unchanged from the previous day.
Spot transactions occurred at 13,370-13,380 yuan/mt in Shanghai, Wuxi and Hangzhou. Traded prices rose some 80 yuan/mt from Tuesday morning.
Despite sufficient supplies, traders failed to reach consensus on spot prices. This, combined with poor purchases by downstream consumers, limited overall trading activity across eastern markets.
Spot transactions were heard at 13,380 yuan/mt in Guangdong, with Guangdong-Shanghai spreads further narrowed to 10 yuan/mt.
Transactions between traders accounted for the majority of trades across southern markets. With the Chinese New Year holiday around the corner, more traders suspended operation. This further reduced trading liquidity across southern markets.