SHANGHAI, Mar 25 (SMM) – With a week before lower value-added taxes take effect, spot aluminium premiums in east China extended gains at the start of the week after breaking through 300 yuan/mt last Friday.
In Shanghai, spot aluminium mostly traded at 13,950-13,970 yuan/mt, down some 60 yuan/mt from last Friday. Premiums over the front-month April contract on the Shanghai Futures Exchange came in at 320-340 yuan/mt, wider than 310-330 yuan/mt on Friday.
Spot deals mostly occurred at 13,950-13,970 yuan/mt in Wuxi and 13,990-14,010 yuan/mt in Hangzhou this morning.
Spot aluminium premiums stood above 330 yuan/mt in early morning trade, but dipped in later trade as smelters and traders turned much more willing to discharge their cargoes.
Across eastern markets, buying interest among traders cooled from previous days, while downstream consumers purchased on demand.
In Guangdong, transactions of spot aluminium were mostly heard at 13,960-13,970 yuan/mt before CST 10:30 this morning. Traded prices fell to 13,940-13,960 yuan/mt after prices of futures fell.
As downstream consumers in Guangdong scaled back their procurement, transactions between traders accounted for the majority of trading activities in the southern city this morning.