SHANGHAI, May 6 (SMM) – Spot aluminium trades in China tumbled more than 100 yuan/mt from pre-holiday levels on the first trading day after the Labour Day break, as US President Donald Trump threatened fresh tariffs

Shanghai base metals fell across the board on Monday as US-China trade tensions res-escalated. US President said the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday.

Spot trades in Shanghai this morning were heard at 14,080-14,090 yuan/mt, before slipping to 14,050-14,070 yuan/mt as prices of futures extended their declines. Traded prices lost 100 yuan/mt from levels seen before the holiday.

Price spreads relative to the SHFE 1905 contract came in at a premium of 20-30 yuan/mt, compared with a discount of up to 10 yuan/mt on April 30.

Deals were done at 14,080-14,090 yuan/mt in Wuxi and 14,090-14,110 yuan/mt in Hangzhou this morning.

As spot prices outperformed futures, traders were keen to purchase spot cargoes. Overall trades across eastern markets, however, were normal as some downstream consumers stood on the sidelines.

Spot aluminium trades occurred at 14,070-14,080 yuan/mt in Guangdong, up to 20 yuan/mt higher than prices in Shanghai.

With lower prices, downstream buyers in Guangdong showed stronger purchasing enthusiasm and this grew trades across southern markets.