SHANGHAI, Apr 8 (SMM) – Downstream consumers in east China failed to sharply step up procurement of spot aluminium for restocking on the first trading day after the Qingming Festival.
They also remained cautious about purchasing on Thursday April 4, the last trading day before the holiday, as stockpiles at the end of March deterred them.
The April aluminium contract on the Shanghai Futures Exchange pared earlier gains in morning trade.
In Shanghai, spot aluminium mostly traded at 13,790-13,820 yuan/mt, compared to 13,770-13,810 yuan/mt on Thursday morning. Traded prices came in at premiums of up to 10 yuan/mt over the SHFE 1904 contract, versus discounts of 10 yuan/mt to premiums of 30 yuan/mt on Thursday morning.
Sellers held back from offloading cargoes after prices of futures fell.
Spot deals mostly occurred at 13,790-13,820 yuan/mt in Wuxi and 13,820-13,840 yuan/mt in Hangzhou this morning.
In Guangdong, spot aluminium mostly traded at 13,800-13,810 yuan/mt this morning. Purchases by downstream consumers across southern markets weakened from Thursday as they continued to deplete pre-holiday stockpiles.