Downstream recovery, lower prices bolster spot aluminium trades in east China

Published: Feb 19, 2019 15:41

Save

Spot discounts in Shanghai came in at 70-60 yuan/mt against the SHFE Mar contract

SHANGHAI, Feb 19 (SMM) – Spot aluminium trades were brisk across east-China markets on Tuesday morning February 19, as downstream consumers have returned normal production and as aluminium prices declined.

Spot deals mostly occurred at 13,340-13,360 yuan/mt in Shanghai and Wuxi, and 13,350-13,360 yuan/mt in Hangzhou, SMM research found. Traded prices were down more than 30 yuan/mt from the previous morning.

Spot discounts in Shanghai came in at 70-60 yuan/mt against the SHFE March contract, slightly wider than 60-50 yuan/mt on Monday morning as accumulated social inventories prompted sellers to be keen to offload cargoes.

The aluminium giant, the Aluminum Corp of China (Chalco), purchased close to 5,000 mt of spot aluminium in eastern markets today.

Trades in the southern markets, however, were poor this morning as downstream consumers had stockpiles to deplete after they returned from holidays.

With premiums of up to 10 yuan/mt over the SHFE March contract, spot deals were mostly done at 13,420-13,430 yuan/mt in Guangdong this morning, and the spread with prices in Shanghai widened to 70 yuan/mt.

Chalco today made some purchase in the southern markets as well.

Market commentary Aluminium

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 7, 2026 17:24

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

Feb 7, 2026 17:24

Feb 7, 2026 17:23

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

Feb 7, 2026 17:23

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

Feb 7, 2026 17:23