Spot aluminium discounts in east China narrow after prices of futures fall

Published: Feb 28, 2019 14:16

Save

Spot discounts narrowed to 30-20 yuan/mt after SHFE aluminium saw losses accelerate in the 2nd part of the morning session

SHANGHAI, Feb 28 (SMM) – Spot aluminium discounts narrowed in east-China markets in the morning of Thursday February 28 as prices of futures fell.

The front-month March aluminium contract on the Shanghai Futures Exchange weakened this morning. In the first part of the morning session, spot discounts in Shanghai were heard at 50-30 yuan/mt against the SHFE 1903 contract, and trades between traders were brisk.

Spot discounts narrowed to 30-20 yuan/mt after SHFE aluminium saw losses accelerate in the second part of the morning session. This eroded buying interest among traders.

On Wednesday morning, spot discounts in Shanghai stood at 60-40 yuan/mt against the SHFE 1903 aluminium contract.

Spot deals mostly occurred at 13,600-13,620 yuan/mt in Shanghai and Wuxi, and at 13,600-13,610 yuan/mt in Hangzhou, SMM research found. Traded prices edged down from the previous morning.

Spot trades were mostly done at 13,610-13,620 yuan/mt in Guangdong this morning, and the spread with prices in Shanghai further narrowed to 10 yuan/mt.

Sellers’ firm offers, despite the decline in prices of futures, and smaller purchases by the Aluminum Corp of China thinned out trades between traders in southern markets. Downstream consumers in Guangdong continued to take a wait-and-see stance or purchase just on demand. Overall trades in southern markets were tepid this morning.

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

21 hours ago

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.

21 hours ago

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.

21 hours ago

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.

21 hours ago