SHANGHAI, Feb 10 (SMM) – Spot aluminium trades in east and south China substantially improved from last week to begin the second week of February as traders stepped up stockpiling with factories in most part of China scheduled to reopen on Monday after an extended holiday. Purchases by downstream consumers, however, were limited on Monday, as some plants would remain shut for longer amid the epidemic outbreak.
Shanghai aluminium futures prices rose in morning trade on Monday, recouping losses from a lower open, on the back of the release of better-than-expected January Chinese inflation data.
As for the physical market, spot trades were done at 13,600-13,620 yuan/mt in Shanghai and Wuxi, up 50 yuan/mt from Friday. This was at a discount of 80-70 yuan/mt against the SHFE February aluminium contract, slightly narrower than levels seen on Friday. Spot aluminium was traded at 13,680-13,690 yuan/mt in Guangdong this morning.
SMM data showed that social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, increased 90,000 mt from Thursday February 6 to 1.04 million mt as of Monday February 10.