SHANGHAI, Mar 19 (SMM) – Spot aluminium premiums in Shanghai further widened in the morning of Tuesday March 19, ahead of a value-added tax cut from next month.
In Shanghai, spot aluminium mostly traded at 13,880-13,890 yuan/mt in Shanghai, up some 90 yuan/mt from the previous day. Premiums over the front-month April contract on the Shanghai Futures Exchange came in at 240-250 yuan/mt, wider than 220-230 yuan/mt on Monday, which is the first trading day after Premier Li Keqiang said on Friday March 15 that the VAT cuts for manufacturing and other sectors will take effect from April 1.
Spot deals mostly occurred at 13,880-13,890 yuan/mt in Wuxi and 13,890-13,910 yuan/mt in Hangzhou this morning.
Spot aluminium trades across eastern markets were brisk this morning as the imminent tax cuts bolstered purchasing interest among traders and downstream consumers and as higher prices from the previous day improved offloading willingness among traders.
Across the southern markets, transactions among traders improved from the prior day while purchasing interest among downstream consumers remained moderate.
Deals mostly occurred at 13,860-13,870 yuan/mt in Guangdong this morning.