SHANGHAI, May 23 (SMM) – Spot aluminium trades in east China remained brisk in the morning of Thursday May 23, as lower prices drove downstream consumers to purchase and as the backwardation on SHFE aluminium and spot premiums grew the inclination to sell.
Trades in Shanghai occurred at 14,150-14,160 yuan/mt, down 50 yuan/mt from Wednesday morning. The spread relative to the front month June contract on the Shanghai Futures Exchange came in at a premium of 20 yuan/mt in early morning trade, before falling to a premium of up to 10 yuan/mt as the SHFE 1906 contract inched up.
Spot deals occurred at 14,150-14,160 yuan/mt in Wuxi and 14,180-14,200 yuan/mt in Hangzhou this morning.
Trades in south China improved from the previous day, as downstream consumers stepped up procurement, in part for the upcoming weekend.
Spot aluminium traded at 14,240-14,250 yuan/mt in Guangdong this morning, with the spread with Shanghai prices at 90 yuan/mt.