SHANGHAI, May 15 (SMM) – Shanghai spot aluminium spread relative to the front month May contract on the Shanghai Futures Exchange flipped into a discount of 20-10 yuan/mt on the morning of Wednesday May 15, from a premium of 10-20 yuan/mt on Tuesday morning.
Thee imminent delivery of the SHFE 1905 contract as well as a sharp increase in prices of futures accounted for the change.
A major trader purchased over 10,000 mt of spot aluminium at 14,320-14,340 yuan/mt in eastern markets in early morning trade. Traded prices dipped to a range of 14,310-14,330 yuan/mt later in the morning, up more than 100 yuan/mt from the previous day.
Deals occurred at 14,310-14,330 yuan/mt in Wuxi and 14,330-14,350 yuan/mt in Hangzhou this morning.
Spot aluminium was traded at 14,340-14,360 yuan/mt in Guangdong this morning, with spreads over prices in Shanghai steady at 30 yuan/mt.
Trades across eastern and southern markets remained tepid as sharply higher prices held downstream consumers on the sidelines.