East China spot aluminium trades improve as prices rebound

SHANGHAI, Aug 27 (SMM) – Spot aluminium trades across east China improved in the morning of Tuesday August 27, as a major trader purchased over 10,000 mt and as traders performed actively.

The front-month September aluminium contract on the Shanghai Futures Exchange rose in morning trade.

With a premium of 30-40 yuan/mt over the SHFE 1909 contract, spot deals were done at 14,280-14,290 yuan/mt in Shanghai and Wuxi earlier in the morning. This was up 30 yuan/mt from Monday morning. Traded prices in Hangzhou were heard at 14,290-14,310 yuan/mt.

Traded prices in Shanghai and Wuxi followed futures higher to 14,300 yuan/mt after CST 11:00, and the premiums over the futures contract came in at 20-40 yuan/mt.

Higher prices, however, sidelined downstream consumers across eastern markets, after they restocked on Monday.

Trading activity across southern markets barely changed from the previous day this morning, with transactions between traders accounting for the majority and downstream consumers continuing on-demand purchases.

In Guangdong, traded prices were heard at 14,290-14,300 yuan/mt shortly after trades began, at 14,300-14,320 yuan/mt between CST 10:30-11:00, and at 14,310-14,320 yuan/mt after CST 11:00.

This widened the spread with Shanghai prices to 20 yuan/mt by midday.