SHANGHAI, Feb 21 (SMM) – In the morning of Thursday February 21, spot aluminium trades across east-China improved from the previous day as most downstream consumers returned after the middle of the first lunar month.
Spot deals mostly occurred at 13,420-13,440 yuan/mt in Shanghai and Wuxi, and 13,410-13,430 yuan/mt in Hangzhou, SMM research found. Traded prices were up more than 40 yuan/mt from the previous morning.
The front-month aluminium contract on the Shanghai Futures Exchange inched up from the prior day. Spot discounts in Shanghai stood at 60-50 yuan/mt against the SHFE March contract, slightly narrower than 70-60 yuan/mt on Wednesday morning.
The aluminium giant, the Aluminum Corp of China (Chalco), purchased about 2,000 mt of spot aluminium in eastern markets this morning. This was not enough to deplete inventories held by traders.
With discounts of 10 yuan/mt against the SHFE March contract, spot deals were mostly done at 13,480 yuan/mt in Guangdong this morning, and the spread with prices in Shanghai remained unchanged at 60 yuan/mt.
Moderate gains in prices eroded trading enthusiasm among traders in southern markets, while purchases by downstream buyers improved.