SHANGHAI, Jun 27 (SMM) – The spread between Shanghai traded prices of spot aluminium and the July contract on the Shanghai Futures Exchange flipped into a discount of up to 10 yuan/mt on the morning of Thursday June 27, from a firm premium seen in previous weeks.
This was because month-end and mid-year financial settlement drove traders to scale back purchases, and as downstream consumers continued to purchase just on demand.
Overall trades across eastern and southern markets were poor this morning.
Spot trades occurred between 13,910-13,920 yuan/mt in Shanghai and Wuxi earlier in the morning, before a sharpened oversupply weighed prices to 13,890-13,900 yuan/mt in Shanghai and 13,900-13,920 yuan/mt in Wuxi.
Traded prices were heard at 13,940-13,960 yuan/mt in Hangzhou this morning.
Deals occurred at 13,980-13,990 yuan/mt in Guangdong, with the spread with Shanghai prices at 70 yuan/mt.