SHANGHAI, Feb 22 (SMM) – Despite higher prices, spot aluminium trades across east-China remained brisk in the morning of Friday February 22, as downstream consumers stockpiled for the weekend.
Spot deals mostly occurred at 13,490-13,510 yuan/mt in Shanghai and Wuxi, and 13,500-13,510 yuan/mt in Hangzhou, SMM research found. Traded prices were up more than 70 yuan/mt from the previous morning.
The front-month aluminium contract on the Shanghai Futures Exchange rose on the day. Spot discounts in Shanghai stood at 90-70 yuan/mt against the SHFE March contract, slightly wider than 60-50 yuan/mt on Thursday morning.
The aluminium giant, the Aluminum Corp of China (Chalco), purchased about 2,800 mt of spot aluminium in eastern markets this morning.
Spot aluminium trades in southern markets, however, were tepid this morning as a substantial increase in prices of futures eroded buying interest among traders.
With discounts of 40-30 yuan/mt against the SHFE March contract, spot deals were mostly done at 13,540-13,550 yuan/mt in Guangdong this morning, and the spread with prices in Shanghai shrank to 40 yuan/mt.