SHANGHAI, Oct 23 (SMM) – Shanghai spot aluminium premiums exceeded 100 yuan/mt in Wednesday morning trades for the first time since April, as falling inventories and the imminent upgrading of value-added tax system tightened supply.
Spot aluminium was mostly quoted at 13,940-13,960 yuan/mt in Shanghai and Wuxi in the morning, up 20 yuan/mt from Tuesday morning. This generated a premium of 90-110 yuan/mt over the Shanghai Futures Exchange aluminium contract for November delivery, which held in a tight range in morning trades.
Spot prices in Hangzhou were heard at 13,950-13,960 yuan/mt.
The last time when Shanghai spot aluminium premiums surpassed 100 yuan/mt was at the end of March, before a VAT cut kicked in.
High spot premiums muted trades across east China on Wednesday morning.
Downstream consumers in south China stepped up purchases, however, on fears of higher prices. Trades were mostly done at 13,880-13,890 yuan/mt, 70-60 yuan/mt lower than those in Shanghai.
