Spot aluminium trades weaken as lower prices keep offers firm

SHANGHAI, Jul 9 (SMM) – Spot aluminium trades across east and south China weakened in the morning of Tuesday July 9, as sellers held offers firm after prices fell for two consecutive days.

The front-month aluminium contract on the Shanghai Futures Exchange dropped to a low of 13,695 yuan/mt in early morning trade, before it recovered some ground by midday.

With a premium of a maximum of 10 yuan/mt over the SHFE 1907 contract, spot trades in Shanghai and Wuxi occurred between 13,690-13,700 yuan/mt before climbing to 13,700-13,710 yuan/mt. This was down 40 yuan/mt from Monday morning. A major trader purchased at 13,710 yuan/mt in early morning trade.

Trades mostly occurred at 13,710-13,730 yuan/mt in Hangzhou, and 13,740-13,750 yuan/mt in Guangdong. The spread between Shanghai and Guangdong narrowed to 40 yuan/mt.

Sufficient supplies kept sellers keen to offload cargoes, but they were unwilling to lower offers.