SHANGHAI, Jun 4 (SMM) – Spot aluminium trades improved from Monday in east China and remained brisk in the south on the morning of Tuesday June 4, as sharply weaker prices spurred buying interest among traders and downstream consumer.
The front-month June aluminium contract on the Shanghai Futures Exchange extended overnight declines in morning trade. This lowered traded prices in Shanghai spot market to 14,070-14,090 yuan/mt, down 80 yuan/mt from Monday morning.
The premium over the SHFE 1906 contract came in at a maximum of 10 yuan/mt, smaller than 10-20 yuan/mt in the previous morning.
Spot aluminium prices have declined for seven consecutive trading days.
Deals occurred at 14,070-14,090 yuan/mt in Wuxi and 14,120-14,140 yuan/mt in Hangzhou this morning.
Spot aluminium traded at 14,160-14,170 yuan/mt in Guangdong this morning, with the spread with Shanghai prices barely changed at 80 yuan/mt.
Aside from lower prices, the upcoming Dragon Boat Festival holiday also drove downstream consumers in southern markets to stockpile.