SHANGHAI, Jul 11 (SMM) – Spot aluminium trades across east China improved in the morning of Thursday July 11, as significantly higher prices prompted sellers to cash in and buyers to purchase.
Trades across eastern markets also receive a boost from the procurement of over 6,000 mt by a major trader.
Shanghai aluminium climbed overnight as the US dollar weakened after US Federal Reserve Chairman Jerome Powell signalled that the US central bank could be cutting interest rates soon.
Despite a reversal of overnight gains in the SHFE 1907 contract in early morning trade, a firm premium of up to 20 yuan/mt bolstered traded prices of spot aluminium in Shanghai and Wuxi to 13,790-13,820 yuan, up over 70 yuan/mt from Wednesday morning.
Trades mostly occurred at 13,820-13,840 yuan/mt in Hangzhou.
Higher prices, however, sidelines downstream consumers across eastern and southern markets.
In Guangdong, spot aluminium deals mostly occurred at 13,800-13,810 yuan/mt, with the spread with Shanghai further narrowed to 10 yuan/mt.