Spot aluminium returns to premiums after prices of futures fall

Published: Apr 3, 2019 13:51

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Shanghai spot aluminium premiums over the SHFE 1904 contract came in at up to 10 yuan/mt

SHANGHAI, Apr 3 (SMM) – Spreads of Shanghai traded prices of spot aluminium relative to the front-month contract on the Shanghai Futures Exchange returned to premiums on Wednesday after staying in discounts in the first two days of week.

The SHFE 1904 aluminium contract edged down overnight and traded rangebound in this morning’s trading hours.

The value-added tax cuts took effect on Monday April 1, and high spot aluminium premiums seen in March flipped into discounts on Monday and Tuesday.

In Shanghai, spot aluminium mostly traded at 13,750-13,760 yuan/mt, barely changed from Tuesday morning. Premiums over the SHFE 1904 contract came in at up to 10 yuan/mt, compared to discounts of up to 10 yuan/mt on Tuesday morning and discounts of 30-20 yuan/mt on Monday morning.

Spot deals mostly occurred at 13,750-13,760 yuan/mt in Wuxi and 13,760-13,780 yuan/mt in Hangzhou this morning.

Bolstered by purchases by a large trader, trades between traders in eastern markets were brisk this morning, while downstream consumers purchased on demand.

Spot aluminium mostly traded at 13,750-13,760 yuan/mt in Guangdong this morning, flat with prices in Shanghai.

Trades between traders still accounted for the majority of trading activity in southern markets.

Market commentary Aluminium

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