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.