Spot aluminium purchases by downstream consumers improve in south China

Published: Feb 25, 2019 15:13

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Spot discounts in Shanghai stood at 80-70 yuan/mt against the SHFE 1903 contract

SHANGHAI, Feb 25 (SMM) – At the start of the third week after the Lunar New Year holiday, spot aluminium buying interest among downstream consumers in south China improved from the previous week.

Spot aluminium deals among traders, however, still accounted for the majority of trading activities in the southern markets.

The from-month SHFE March contract rose from last Friday, after US President Donald Trump announced a postponement of a March 1 deadline for additional tariffs on Chinese goods.

Spot deals mostly occurred at 13,580-13,590 yuan/mt in Shanghai and Wuxi, and 13,570-13,590 yuan/mt in Hangzhou, SMM research found. Spot discounts in Shanghai stood at 80-70 yuan/mt against the SHFE 1903 contract, barely changed from the morning of last Friday.

Spot trades were mostly done at 13,630-13,640 yuan/mt in Guangdong this morning, and the spread with prices in Shanghai came in at 50 yuan/mt.

In a rising market, buying willingness among downstream consumers in eastern markets improved. Overall trades in eastern markets were brisk today.

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.

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