Spot aluminium purchasing enthusiasm further improves ahead of tax cuts

Published: Mar 20, 2019 13:44

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Premiums over the SHFE 1904 contract came in at 240-260 yuan/mt

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.

Market commentary Aluminium

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