Spot aluminium trades in east China weaken despite lower prices

SHANGHAI, May 20 (SMM) – Spot aluminium trades across eastern markets weakened from Friday morning on the morning of Monday May 20, even as prices declined.

Trades in Shanghai was done at 14,270-14,290 yuan/mt, down 40 yuan/mt from Friday morning. The spread relative to the front month June contract on the Shanghai Futures Exchange remained unchanged in a premium of up to 10 yuan/mt.

Spot deals occurred at 14,270-14,290 yuan/mt in Wuxi and 14,290-14,310 yuan/mt in Hangzhou this morning.

A major trader made limited purchases in eastern markets. This, together with poor purchasing enthusiasm among downstream consumers, led to weak spot aluminium trades in east China at the start of the week.

Trades in southern markets, however, saw better performance this morning, due to brisk transactions between traders.

Spot aluminium was traded at 14,340-14,350 yuan/mt in Guangdong, with spreads over prices in Shanghai expanding to 60 yuan/mt.