SHANGHAI, Apr 4 (SMM) – In the morning of the last trading day before Qingming Festival, spot aluminium buyers in east China held back from purchasing after prices of futures came from earlier highs.
This, together with on-demand purchases by downstream consumers, resulted in normal trading liquidity across eastern markets this morning, despite the upcoming public holiday.
Month-end stockpiles deterred downstream consumers in east China from restocking for the holiday.
The April aluminium contract on the Shanghai Futures Exchange pared earlier gains in the second part of morning trade, after hitting highs of 13,810 yuan/mt.
In Shanghai, spot aluminium mostly traded at 13,790-13,810 yuan/mt before falling to a range of 13,770-13,790 yuan/mt as prices of futures slipped. Traded prices came in at discounts of 10 yuan/mt to premiums of 30 yuan/mt relative to the SHFE 1904 contract, and went up more than 20 yuan/mt from Wednesday morning.
Spot deals mostly occurred at 13,770-13,790 yuan/mt in Wuxi and 13,790-13,810 yuan/mt in Hangzhou this morning.
In Guangdong, spot aluminium mostly traded at 13,790-13,810 yuan/mt this morning, flat with prices in Shanghai.
Trades between traders still accounted for the majority of trading activity in southern markets, as downstream consumers remained cautious about procurement.