Spot aluminium purchasing enthusiasm further improves ahead of tax cuts

SHANGHAI, Mar 20 (SMM) – Aluminium purchasing enthusiasm among traders and downstream consumers across China’s eastern and southern spot markets substantially improved on Wednesday morning as lower value-added taxes approached.

This resulted in brisk trades across the markets this morning.

In Shanghai, spot aluminium mostly traded at 13,950-13,970 yuan/mt in Shanghai, up some 70 yuan/mt from the previous day. Premiums over the front-month April contract on the Shanghai Futures Exchange came in at 240-260 yuan/mt, slightly wider than 240-250 yuan/mt on Tuesday.

Spot deals mostly occurred at 13,950-13,970 yuan/mt in Wuxi and 13,960-13,980 yuan/mt in Hangzhou this morning.

In Guangdong, transactions of spot aluminium were mostly heard at 13,950-13,970 yuan/mt, flat from prices in Shanghai.

While trades between traders still accounted for the majority of trading across the southern markets, purchasing interest among downstream consumers there recovered from previous days.